Jakarta. Tech company GoTo Gojek Tokopedia (GOTO) in collaboration with energy company TBS Energi Utama (TOBA) broke ground on an electric motorcycle assembly plant in Cikarang, West Java, on Friday.

The two companies have established a joint venture called Electrum to initiate the project.

The factory occupies an area at Greenland International Industrial Center on Jakarta-Cikampek Toll Road KM 37 just east of Jakarta.

“We begin with the construction of an assembly line with a capacity of 250,000 motorcycles a year. The entire lines will have a capacity of up to 1 million when completed,” Electrum Managing Director Patrick Adhiatmadja told reporters in Cikarang.

The project is estimated to cost $1 billion for the first four years with an equal cost-sharing agreement between GoTo and Toba, Electrum CEO Pandu Sjahrir added.

The assembly plant construction will take a portion of the total investment, but Pandu declined to go into detail.

“As one of the initiators for the most thorough, integrated electric vehicle ecosystem in Indonesia, Electrum announces that we commence building our first electric motorcycle factory in Indonesia,” the joint venture company said in a statement.

Ride-hailing company Gojek will supply its entire two-wheeler fleet with Electrum motorcycles by 2030, ensuring a captive market of thousands of electric bikes.

It will also oblige all partnering drivers to use electric cars only by the end of this decade.

“Since the large majority of the Gojek ecosystem is two-wheelers, we are focused on electric motorbikes first,” GoTo Head of Sustainability Department Tanah Sullivan said recently.