PT Indika Energy Tbk (INDY) is considering a USD2 billion joint investment with Taiwanese company Foxconn to manufacture electric vehicles, batteries and energy storage. This is based on a statement by Indika officials to Reuters. A partnership was established between Foxconn, Indika and three other entities earlier this year in a memorandum of understanding to collectively invest USD8 billion in producing EVs (electric vehicles) and batteries in Indonesia. A feasibility study for the Foxconn-Indika venture is targeted for completion in the fourth quarter of this year, said Indika Group CEO Azis Armand. "The most interesting thing is Indonesia's large domestic market, which has a relatively low adoption rate, although we do not rule out export markets such as Vietnam and China," said Azis quoted Friday (22/7/2022). Indonesia has set a target of having 13 million electric motorcycles, including converted ones, and 2.2 million electric cars on the roads by 2030. This is in line with Indonesia's zero emission target. Indika, Indonesia's third largest coal producer through its unit PT Kideco Jaya Agung, has focused on increasing revenue from non-coal businesses, such as gold mining and EVs. It aims for 50% of its revenue to come from the non-coal business by 2025. That portion is up from the current 12%, which Azis says is key to staying relevant. "If we only look at the coal sector, our participation will not be sustainable in providing energy to Indonesia," said Azis. He hopes to hit the 50% target with an investment of around USD500 million over the next three years, most of which goes into existing projects, such as the electric bicycle brand, Alva, which will launch commercially in August. While Foxconn has expanded its EV activities in recent years. One of these deals with US start-up Fisker Inc and Thai energy group PTT.