COAL miner TBS Energi Utama aims to start producing electric scooters in 2024 through its joint venture with tech giant GoTo Gojek Tokopedia, executives said on Thursday (Oct 13).

The joint venture, Electrum, currently provides services like battery swapping and leasing electric scooters to drivers on ride-hailing app Gojek.

“By 2024, we aim to start producing motorbikes in Indonesia and then later on battery packing,” Patrick Adhiatmadja, managing director of Electrum told reporters, adding the company would also target providing motorbikes to courier service firms.

TBS Energi president Director Dicky Yordan said Electrum has access to more than 2 million Gojek drivers.

Electrum, since its inception last year, has distributed around 300 units it procured from Taiwanese and Indonesian makers. Next year, the company aims to distribute up to 10,000 units.

TBS Energi, which wants to stop mining coal in five years, will set aside US$350 million of its own funds for Electrum up to 2025. The company is also setting aside US$150 million for renewable energy projects such as hydro, wind and biomass power plants.

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The company officials did not share the total investment needed for the electric scooter production plant but said they may tap other financing sources.

TBS Energi is targeting to reach net-zero carbon emissions in 2030 and to have the majority of its revenue from sources other than the coal mining business by then, said vice president Pandu Sjahrir.

He said only a minimal portion of the company’s capital expenditure going forward will be set aside for its coal business.

“For us, by 2027, there will be no more coal digging,” Pandu said. REUTERS