Danantara Partners with TVS to Develop Electric Motorcycles and Ethanol-Based Vehicles
The Daya Anagata Nusantara Investment Management Agency (Danantara) is currently exploring opportunities for cooperation with TVS Motor Company to develop new energy-based two-wheeled vehicles in Indonesia. This collaboration encompasses the development of electric motorcycles as well as ethanol-based vehicles.
The plan emerged after Danantara CEO Rosan Roeslani accompanied President Prabowo Subianto in receiving a delegation from TVS Motor Company at the Merdeka Palace, Jakarta, on Thursday, 17 September 2026. The meeting served as part of the discussions regarding new cooperation opportunities between Danantara and the Indian automotive company.
Rosan stated that the meeting with TVS was held in an exploratory manner. The TVS CEO attended the meeting with President Prabowo to discuss several potential areas of cooperation that could be developed in Indonesia. “We discussed plans and the possibility of cooperation. The principals and the CEO attended, but it was more of a courtesy visit to the President,” said Rosan.
According to Rosan, TVS is not a new investor in Indonesia. The company has been conducting business in the two-wheel and three-wheel sectors for many years and maintains a production base in Karawang, West Java.
TVS Prepares Factory Expansion
The planned cooperation with Danantara is also linked to TVS’s plan to expand its investment in Indonesia. The factory expansion is being prepared to support the development of new products, including electric vehicles and vehicles using ethanol fuel.
Rosan noted that the development of ethanol-based vehicles was one of the interesting aspects of the discussion. In addition to electric motorcycles, this alternative fuel technology is considered a vital part of the future development of the Indonesian automotive industry.
“The cooperation is planned for the electric motorcycle and ethanol-based motorcycle sectors,” said Rosan.
The involvement of universities will also be encouraged in the development of this technology. Danantara plans to create space for collaboration between universities, TVS, and the industrial ecosystem to conduct research and vehicle development. Collaboration with educational institutions could include the development of vehicle technology, components, and human resources. Thus, product development would not only be oriented towards production activities but also towards building domestic technological and research capabilities.
For Indonesia, the development of electric and alternative fuel vehicles is also related to efforts to expand technological options in the transport sector. Two-wheelers represent a segment with a large user base, making technological development in this segment achievable through simultaneous industrial and research approaches.
TVS Investment Reaches USD 250 Million
TVS Motor Company has been investing in Indonesia since 2006 through PT TVS Motor Company Indonesia (TMCI). Throughout its operations, the company’s investment has continuously increased to meet various business development needs.
Total investment by TVS in Indonesia is reported to have reached approximately USD 250 million, or about IDR 4.2 trillion. This value includes investment in the construction and development of production facilities, technology, job creation, and various supporting projects.
The Director of PT TMCI, Rajesh Ramani, stated that TVS’s investment in Indonesia at its inception was around USD 50 million. Since then, the company has gradually increased investment to expand its operational activities. “At the beginning, we invested about USD 50 million. Over the last 18 years, we have continued to invest annually in various projects, bringing the total investment to USD 250 million,” said Rajesh.
This investment has also impacted the industrial ecosystem surrounding TVS’s operations. The company currently employs approximately 700 people across various sectors. In addition to direct labour, TVS noted that its business activities involve around 5,000 families indirectly, connected through a network of suppliers, distributors, contractors, and other business partners in Karawang and other regions in Indonesia.
TVS Production Hits 1 Million Units
TVS’s investment journey in Indonesia is also marked by reaching a production milestone of 1 million vehicle units in 2026. These vehicles are produced through the TVS facility in Karawang, West Java. The products from this facility are not only intended for the domestic market; a portion of production is also exported to approximately 30 target countries.
This production achievement serves as a foundation for the company’s plan to expand manufacturing activities in Indonesia. With established production experience and export networks, the expansion into electric vehicles and ethanol technology can be carried out using existing operational facilities.
The cooperation being explored with Danantara opens new avenues for technological development. Beyond manufacturing investment, the focus of the cooperation is directed towards product and technology development involving universities and the national industrial ecosystem.
For Danantara, the exploration with TVS is part of an effort to expand investment opportunities in sectors related to energy transformation and industry. For TVS, Indonesia remains a vital base for production and business development activities in the region.
The next stage of this cooperation will depend on further discussions between both parties. However, the announced agenda indicates two primary areas of focus: the development of electric motorcycles and ethanol-based vehicles.