Indonesia-based venture capital firm Alpha JWC Ventures, which recently invested in Electric Two Wheel (E2W) vehicles maker Ilectra Motor Group (IMG), expects E2W to be widely used in the country soon, its Co-Founder said.

“E2W is highly potential, especially in Indonesia with its large market and increasing demand for motorbikes. The trends projected that E2W will be adopted widely soon, and with our superior proposition, we can provide the best-in-class options to cater to this,” Alpha JWC Ventures Co-Founder and General Partner Chandra Tjan told TechNode Global.

“Furthermore, Indonesia has abundant raw materials for E2W, and with Indika Energy in this project, we are in a unique position to become the market leader,” he said in an interview. “IMG is now focusing on developing E2W vehicles, but we are always open for future opportunities in EV sectors in Indonesia.”

Indonesia is the world’s top producer of nickel, accounting for up to 30 percent of global production, Bangkok Post reported last year. It has the world’s largest nickel reserves, which are set to last for more than 30 years. Nickel is also a critical part of EV batteries. The country also boasts large amounts of copper, bauxite and nickel ore, making it a critical player in the development of lithium-ion batteries.

“Investing in E2W also pushes forward our mission to build a better world, through more sustainable ways of living,” Chandra added.

Last month, Alpha JWC Ventures, Hong Kong billionaire Li Ka-shing’s private investment firm Horizons Ventures and Indonesia-listed energy firm Indika Energy their latest collaboration in the form of joint investment in IMG, a company that specializes in E2W vehicles.

First announced through Indika Energy’s public expose on May 20, IMG is Alpha JWC Ventures and Horizons Ventures’ first venture into the electric vehicles (EV) sector. IMG is founded to facilitate the partnership and build not only a two-wheeler brand, but also its supporting ecosystem which is very much still nascent, including EV infrastructure for which further collaborations to be built with a partnership network.

IMG raised $7.5 million from Alpha JWC Ventures and Horizon Ventures and another $7.5 million from Indika Energy’s additional equity investment. In total, IMG would raise $15 million.

Although Chandra declined to elaborate on the role Indika Energy will play in building the whole E2W ecosystem, it is worth noting that Indika Energy has in January signed a memorandum of understanding with PT Industri Baterai Indonesia (IBC), iPhone maker Hon Hai Precision Co Ltd (Foxconn), and NASDAQ-listed Taiwanese battery-swapping electric scooter maker Gogoro to collaborate in the development of sustainable new energy ecosystem in Indonesia.

“IMG is ready to kick off its journey to manufacture top-of-the line E2W bikes, with the first fleet to be ready by end of 2022. It will also expand the partnership network to build the E2W ecosystem to support its bikes and users,” he said.

“The ecosystem would include but not limited to charging stations, maintenance centers, and others. We will build a network of partners to bring the best experience possible for our customers,” Chandra said.

E2W vehicles to gain traction globally

According to Azoth Analytics research report, the Global E2W vehicles market is projected to display significant growth and was valued at $51.22 billion in the year 2020 with Asia Pacific region leading the regional market share.

Growth in the E2W vehicles Market is mainly driven by growing environmental concerns and the active steps taken by various governments towards zero-emission laws, thereby reducing the carbon emissions in the environment, the report noted.

“Increasing e-scooters and e-motorcycles demand is expected to boost the demand of E2W vehicles market. Meanwhile, the demand is offset by inappropriate charging infrastructure. However, there are growing efforts by companies to boost the EV infrastructure along with charging points to combat the barriers. Moreover, rising expenditure by the government, carbon emission regulation policies and investments by leading OEMs is boosting the need for E2W vehicles in the industry, which is, in turn, driving the market demand,” the report added.

The COVID-19 pandemic has also accelerated a trend towards individual mobility solutions. This has led to a rising demand of powered two-wheelers. This has helped the electric two-wheelers gain a strong market share in the world, the report added.

“There has been a behavioral change among the people towards mobility due to the rising environmental concern and this can be directly seen with the sudden boom of E2W market after the lockdown and restrictions were uplifted,” the report said.

In 2020, the number of motorcycles in use was roughly 112 million units in Indonesia. Indonesia has one of the highest motorbike uses in the world, according to Statista, a German database firm. The country alone provides a substantial market for E2W makers.

Last November, Indonesia-headquartered ​​ride-hailing company Gojek and Taiwan’s Gogoro announced they will launch a pilot program to test scooters with swappable batteries in Indonesia’s capital.

Earlier this month, PT GoTo Gojek Tokopedia Tbk (GoTo Group) announced it has expanded its ‘Three Zeros’ commitments (Zero Emissions, Zero Waste, Zero Barriers) across its ecosystem, forming a consolidated approach and strategy for the company, united behind common sustainability goals.

Bain & Co, Temasek report: Electric mobility represents $50B opportunity by 2030

Electric mobility represents a $50 billion opportunity by 2030 with challenges to ramp up and scale. The report also said E-mobility looks poised to take off in Indonesia, Thailand, and Vietnam, especially for two-wheeler electric vehicle manufacturing and sales. While foreign original equipment manufacturers (OEM) dominate vehicle and cell manufacturing, there are opportunities to partner with foreign OEMs to set up SEA battery manufacturing plants, a recent report by Bain & Company and Temasek, with contributions from Microsoft showed.

“To unlock the full potential with E-mobility, SEA countries need to improve market access and overcome transition costs, with proper incentives and infrastructures,” the report added.

Indika Energy, Alpha JWC Ventures and Horizons Ventures team up for EV venture