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May 14, 2024Learning from MAKA Motors: Building a viable energy transition business in Indonesia
With rapid urbanization and economic growth in Southeast Asia (SEA), the demand for energy transition is surging. This steers the region toward renewable energy sources, as countries look to diversify their energy mix and reduce their reliance on fossil fuels and their price volatility, ultimately cutting their carbon emissions.
The recent Southeast Asia Energy Outlook 2022 report by the International Energy Agency (IEA) shows that energy demand in the region has surged by an average of 3% annually over the past two decades.
If you are a founder in this sector wondering how to start an energy transition company and aspiring to make a change, read on to get inspired by the East Ventures-backed founder of MAKA Motors!
The humble beginnings
MAKA Motors is a rising star in the energy transition industry, offering an alternative to fossil-fueled two-wheelers, that is, electric vehicle two-wheelers (EV2W).
The company began with two best friends passionate about creating a real, positive impact: Raditya Wibowo, familiarly known as Dito, and Arief Fadillah. They brought together their experience as two-wheeler users since high school and seven long years working at a ride-hailing giant, Gojek.
Indonesia is home to 125 million motorcycle riders. Yet, when transitioning to EV2W, consumers are not necessarily prioritizing sustainability when making purchasing decisions. They are more likely to be swayed by factors such as cost, performance, and reliability.
“People will not switch to EVs (or other sustainable alternatives) simply because they want to be more environmentally friendly. There must be other benefits offered, and we think that is one of the keys to running a ‘green business’ in Indonesia: it is not enough to just be green; there have to be more benefits for the user,” said Dito. And thus, MAKA Motors was born.
Its humble beginnings started out at Dito’s garage back home with them and their small team of ex-colleagues from Gojek.
Being veterans in the industry gave them an intimate understanding of creating and designing products that cater to users’ needs.
“As two-wheeler riders, we have a strong view of what is needed from two-wheelers in Indonesia to be comfortable on the road and what users need. We think that is important when designing a product,” said Dito.
Despite that, there were times when Dito thought that creating a motorcycle from scratch was “not remotely easy,” even after combining his background in industrial engineering with Arief’s expertise in design engineering.
He recalled a simpler time when he and Arief came to the office to experiment with rotating dynamos with a hearty laugh.
“We had a battery, a dynamo, and a wiring diagram. I tried to remember the lecture I had in college – how to read (the diagram). Arief, who used to work as an oil and gas engineer, helped with the cables. The first time it spun, we were over the moon! Alas, our joy did not last, and smoke came out. It turned out that we did not install the key switch correctly, and it got burnt. But hey, at least it worked! Though, it is still a long way before it finally becomes a full two-wheeler.”
Dito also shared that their office and workshop were once flooded. “We all rolled up our pants to rescue the unfinished vehicle in panic and thought, “What are we going to tell our investors?” It was quite a stressful day for our team. Fortunately, all tools and equipment worked well as everyone moved swiftly to secure the goods,” he reminisced.
Read the full insights at East Ventures.