Jakarta. Terang Dunia Internusa, the owner of the renowned bicycle brand United, has outlined plans for an initial public offering (IPO) later this year, with the intention of raising fresh capital as the company takes steps into the electric scooter market, which is witnessing robust demand growth in Indonesia.

At present, Terang Dunia produces up to 2,000 electric scooters under the United E-Motor brand every month. However, demand has already surged to a range of 5,000 to 10,000 units per month, according to Chief Executive Officer Stephen Mulyadi.

Stephen anticipates raising up to Rp 2 trillion ($131 million) from the IPO to establish a dedicated electric scooter factory. This factory, distinct from the existing bicycle production facility, will be located in the Curug district of Tangerang regency and is slated to achieve a monthly capacity of 50,000 units.

"We hope to commence construction [of the factory] next year," Stephen said during a visit to the B-Universe Media Holdings office in Jakarta on Thursday.

Stephen noted that demand for United electric scooters has surged by 60 percent in recent months, primarily triggered by the government's attractive incentive scheme for electric motorbike purchases. He said the company has reached numerous supply agreements with government entities, retailers, businesses, and even export orders to Malaysia throughout the year.

Stephen expressed his confidence that the United brand is poised to become a key player within this thriving industry.

"We are prepared to compete with our competitors as our electric motorcycle assembly lines are fully integrated, spanning from the upstream to the downstream," Stephen claimed.

Terang Dunia currently possesses its own battery pack factory in the Jakarta suburb of Sentul with a target to expand its capacity through joint ventures with Chinese investors.

Moreover, for after-sales services, Terang Dunia has established outlets in major cities that can be expanded to provide maintenance and repair services through the employment of skilled technicians. This strategy is to be extended to other affiliated dealerships as well, Stephen said.

In support of the electric vehicle adoption, the government has allocated a subsidy of Rp 7 million for the acquisition of electric motorcycles, with this year's subsidy catering to up to 200,000 electric motorbikes.