Grab and South Korea’s top automaker Hyundai Motor Co., announced on Friday (12/13) that it targeted 500 units of grab car's electric vehicles (EV) can pave in Indonesia throughout 2020 - Photo by TheInsiderStories.

JAKARTA (TheInsiderStories) – Southeast Asia’s ride-hailing giant Grab and South Korea’s top automaker Hyundai Motor Co., announced on Friday (12/13) that it targeted 500 units of grab car’s electric vehicles (EV) can pave in Indonesia throughout 2020, with 20 units of it will start the operations next month.

“The fastest launch in January 2020 with 20 units, and throughout the year 500 units,” said President Grab Indonesia Ridzki Kramadibrata when launching the Electric Vehicle Ecosystem Roadmap before the Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan and the Minister of Research and Technology Bambang Brodjonegoro in Jakarta.

The model that will be ready to launch is the Hyundai Ioniq Electric with a capacity of 38 kilowatts battery, which can travel 380 kilometers. The vehicle will be called the “grab car electric vehicle” with special rental status, an online taxi with a black template. The vehicles can later be ordered on the grab application, Kramadibrata explained.

Last month, Hyundai has signed an agreement with the government to invest $1.55 billion to build a car production base with an annual capacity of up to 250,000 units and a sales network in Indonesia in hopes of grooming the world’s fourth-most populous country as a gateway to the broader Southeast Asian market.

Besides electric cars, Grab will also try out as many as 20 units of electric motorcycles, in cooperation with Astra Honda Motor (AHM) and Gesits, Kramadibrata adds.

“There are 20 units of electric motorcycles we prepared for next year. We are walking the pilot, we develop it while seeing how savings, how much is obtained, by charging electricity for this motorbike,” he said.

Kramadibrata revealed Grab had signed a cooperation agreement with the state electricity company PT Perusahaan Listrik Negara (PLN) to jointly build a network of electric vehicle charging stations.

The effort could also be realized after the inclusion of a US$2 billion capital injection from Softbank, a Japanese finance company led by conglomerate Masayoshi Son. The funds were used to build an ecosystem-based on electric vehicles.

Kramadibrata said Grab is looking into several types of EV that will be used for Indonesia’s market, following Indonesia’s presidential decree to support the EV industry and turning the country into an EV hub for Asia and beyond.

The government measures are directed at stimulating the adoption of battery-powered cars in the country, as well as incentivizing the production and export of EVs. Benefits such as lower taxes for manufacturers and buyers of EV and advantages such as special parking areas are part of the new policy, according to Pandjaitan.

Kramadibrata said on Thursday that Grab is preparing and communicating with the government, while it is also waiting to see which industry guidelines will be derived from the recent presidential decree.

“We are preparing for the kind of vehicles that will be suitable with Indonesia’s market, either four wheels, three wheels, and two wheels. For four wheels, we definitely will join with Hyundai, but for other wheels, we are considering whether to collaborate with international direct investment or not,” he said.

Pandjaitan said this week that Softbank will build charging stations to support Grab in implementing its network of EV. Last July, Softbank’s chief executive Masayoshi Son, together with Grab CEO Anthony Tan and Kramadibrata went on a meeting with President Joko Widodo. After the encounter, Softbank and Grab announced an investment of $2 billion over five years to drive the digitization of crucial services and infrastructure in Indonesia.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com