Jakarta. Electric vehicle manufacturer VKTR Teknologi Mobilitas (VKTR) officially started the construction of Indonesia's first completely knock-down (CKD) electric commercial vehicle assembly plant in Magelang, Central Java, on Tuesday.

VKTR is investing Rp 200 billion ($12.76 million) through its subsidiary, VKTR Sakti Industries (VKTS), for construction and technological development, while Karoseri Tri Sakti contributes land and buildings valued at approximately Rp 100 billion.

The plant is targeting an annual production capacity of up to 3,000 units of electric buses and trucks.

Anindya N. Bakrie, President Director of Bakrie & Brothers, VKTR's parent company, said the VKTS facility's development is a manifestation of the Bakrie Group's commitment to total decarbonization by 2042, aligning with the Bakrie Group's centenary.

"We are optimistic that with the continuous growth of Indonesia's sustainability and electrification industry, we will meet both the internal targets of the business group and support the Indonesian government's goal towards Net Zero Emissions (NZE) by 2060," explained Anindya in his official statement on Wednesday.

Through the VKTS facility, VKTR claims it will contribute to the EV industry in Indonesia, including creating at least 100 green jobs by 2024. Furthermore, it aims to achieve a minimum of 40 percent domestic component level and become the official local assembly facility for the Chinese Build Your Dream (BYD) EV brand.

VKTS will engage local academic institutions such as Surabaya State Polytechnic of Electronics (PENS), UNS Surakarta, and Bandung Institute of Technology for research and development.