President inaugurates factory in Magelang, VKTR commits to boosting local content
Jakarta (ANTARA) - President of the Republic of Indonesia Prabowo Subianto inaugurated the electric commercial vehicle assembly plant owned by PT VKTR Sakti Industries (VKTS), a subsidiary of VKTR, in Magelang, Central Java, with the company emphasising the enhancement of the Domestic Component Level (TKDN).
The plant inaugurated on Thursday is Indonesia’s first electric bus and truck assembly facility equipped with international-standard testing systems, ranging from road tests to flood tests.
VKTR’s Chairman Anindya Novyan Bakrie, in an official statement received in Jakarta on Thursday, affirmed that the company has been built from the outset with a focus on decarbonisation and national economic independence.
He noted that developing electric vehicles is a strategic step in reducing dependence on imported oil and fuel while supporting the 2060 net zero emission target.
“Mr President (Prabowo) has always taught us that the history of development often turns crises into opportunities for great leaps,” Anindya said.
Furthermore, VKTR has chosen to focus on developing electric buses and trucks as the main drivers of the national electric vehicle ecosystem.
In terms of industry, VKTR reaffirmed its commitment to gradually increasing TKDN. Currently, TKDN has reached 40 percent and is targeted to rise to 60 percent this year, and 80 percent by 2028.
He also added that the development of the automotive industry in various countries generally begins with commercial vehicles.
“In the history of other countries, in Japan they advanced first with buses and trucks before cars,” Anindya said.
In addition to increasing TKDN, VKTR is also working to strengthen the green mobility ecosystem through the provision of charging infrastructure and the development of innovative technology, including retrofitting petrol-fuelled vehicles into electric ones.
This plant, located in the Magelang industrial area, is part of a Rp5 trillion investment from the Bakrie Group.
In its operations, VKTR has partnered with various national body builders as well as several strategic customers, including the public transportation and logistics sectors.
Meanwhile, in his remarks, President Prabowo appreciated the role of the national private sector in promoting domestic industrialisation, particularly the contributions of VKTR and its business group.
The President also hopes that VKTR can grow into a major player in the national automotive industry.
“If Japan has Isuzu and Hino, if Korea has Hyundai and Daewoo, I hope that in a few years we will regard and see VKTR as one of Indonesia’s champions,” he stated.