Indonesia-listed electric vehicle company PT VKTR Teknologi Mobilitas Tbk (VKTR) has signed a non-binding term sheet with Danantara’s investment arm, PT Danantara Investment Management (DIM), and PT Bakrie & Brothers Tbk (BNBR) for potential financing of up to 2 trillion rupiah ($112.6 million).
The term sheet was signed on Aug. 28, according to VKTR’s disclosure to the Indonesia Stock Exchange (IDX). DIM and/or its affiliates would act as the investor, while BNBR would provide a guarantee. The proposed financing would also carry a conversion option, with the terms to be set out in definitive documents.
VKTR said the funding would support the development and expansion of its mobility-as-a-service (MaaS) business. The company plans to use the proceeds to finance the procurement of electric buses and trucks, among other things, with other uses to be agreed by the parties in the definitive documents.
The proposed financing is still subject to further negotiations. VKTR said the term sheet is non-binding and will only become binding once definitive documents are signed. If the transaction proceeds, the company said it will comply with applicable rules on affiliated transactions, conflicts of interest and material transactions.
The potential funding comes as VKTR builds out its business beyond electric vehicle assembly and sales. The company has been developing a broader EV offering that includes vehicle assembly, distribution, after-sales services, charging infrastructure and a MaaS model. Its subsidiary, PT VKTR Sakti Industries, operates a commercial EV facility in Magelang, Central Java, with production capacity of up to 3,000 buses and trucks a year.
Separately, the potential financing comes as the government steps up efforts to build a domestic electric vehicle industry. President Prabowo Subianto recently launched the Motor Listrik Nasional and its supporting ecosystem, aimed at strengthening domestic capabilities in EV technology and manufacturing.
VKTR has been developing its MaaS business through a partnership with Pertamina New & Renewable Energy, with the two companies signing a 2024 agreement to develop an e-Mobility as a Service model initially targeting electric buses for public transport. The company has also expanded its electric bus footprint, with 122 VKTR-assembled buses operating in Jakarta as of February, while another 30 were undergoing bodywork at Laksana. VKTR has since trialled 12-metre and 8-metre electric buses in Semarang and participated in the procurement of 27 12-metre low-deck electric buses for the city.
VKTR listed on the IDX in June 2023 and focuses on battery-electric commercial vehicles, particularly buses and trucks. It has been building its local manufacturing capacity through its Magelang facility, which uses a completely knocked-down model for commercial EV production.
