Prabowo inaugurates electric vehicle assembly plant in Central Java

By Romel S. Gurky

President Prabowo Subianto inaugurated an electric commercial vehicle assembly plant in Central Java on Thursday, marking a step in the government’s push to expand cleaner energy use in the transport sector.

The facility is operated by PT VKTR Sakti Industries, a subsidiary of PT VKTR Teknologi Mobilitas Tbk (IDX: VKTR), and focuses on assembling electric buses and trucks.

“With this inauguration, we now have the capability to produce electric-based buses and trucks,” Prabowo said during the ceremony.

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The plant is designed to support domestic production of commercial electric vehicles, with capacity reported to reach up to 10,000 units. It also carries a local content level of around 40%, with plans to increase this to 60% in the near term and up to 80% by 2028, according to company executives.

Commissioner Anindya Bakrie said electrification of buses and trucks could reduce fuel subsidy spending by up to US$5 billion annually.

The facility is part of a broader shift toward electric mobility, including the production of buses, trucks and other commercial vehicles using a completely knocked-down assembly system.

Editing by Alexander Ginting