Indonesia’s Kargo Tech announces 40,000-EV shift to build Asia’s “Electrified Silk Road”

Kargo Technologies, an Indonesia-based logistics technology company, has introduced a new visual identity and launched an electric vehicle (EV)-based logistics partnership program, aiming to deploy Southeast Asia’s largest EV fleet. In a statement on Thursday, the company said it plans to roll out more than 500 EVs in 2025 and reach 2,500 by 2026 as part of its broader goal to fully electrify its logistics operations by 2035. The initiative supports Indonesia’s transition to greener supply chains and lays the groundwork for an AI-driven “Electrified Silk Road” connecting Southeast Asia, China, and the Gulf. This milestone marks a new phase in the company’s strategy to address rising demand for cleaner, more efficient, and digitally integrated logistics in Indonesia. The national direction for energy transition, outlined in Permen ESDM No. 10/2025 and Perpres No. 112/2022, has accelerated the urgency for low-emission mobility. Kargo’s electrification program reflects the company’s ambition to lead the adoption of EV trucks and modernize the transport backbone that powers Indonesia’s domestic and cross-border trade. “EVs allow us to see logistics not merely as transportation, but as an integrated system that can be analyzed, measured, and continuously improved,” said Tiger Fang, Chief Executive Officer and Founder of Kargo Tech. Kargo is working closely with several of its largest customers, including SPX, Astro, Teleport, and Modena , to shift parts of their logistics networks to EVs in line with the company’s 2035 electrification roadmap. These early adopters are integrating key routes with Kargo’s electric fleet to align commercial growth with decarbonization goals. As the fleet expands, the transition is expected to improve emissions performance, operating costs, and delivery reliability. Kargo’s long-term vision is to help build an “Electrified Silk Road”—an AI-driven, asset-light logistics network that connects goods and brands from factory to consumers across Southeast Asia, the Gulf, and eventually the wider Global South. By electrifying fleets and embedding intelligence into every shipment, Kargo aims to create cleaner, faster, and more transparent trade routes that go beyond traditional diesel-based, and offline logistics models. “The government has laid out a clear direction for energy transition, but it is the private sector that must turn policy into real projects, real fleets, and real jobs, “Indonesia’s emerging EV logistics ecosystem — spanning manufacturers, financiers, and digital platforms — shows how our companies can lead in green logistics while creating thousands of quality jobs across the value chain,” said Anindya Bakrie, Chairman of KADIN Indonesia (the Indonesian Chamber of Commerce and Industry). Djauhari Oratmangun, Ambassador of the Republic of Indonesia to the People’s Republic of China, said they are seeing a new wave of Chinese investment into Indonesia, not only in traditional sectors but in EV manufacturing, batteries, and digital logistics. “This collaboration supports Indonesia’s energy transition, creates quality jobs, and positions the country as a key partner in building cleaner, more efficient trade routes between China and Southeast Asia,” he added. Kargo also initiated a pilot program with selected corporate customers in late 2025, aiming to measure actual energy efficiency and operational cost benefits; assess route readiness and supporting infrastructure; gather direct feedback from early users of EV-based logistics services. The company will deploy more than 500 electric vehicles in 2025, and 2500 EV vehicles by 2026 as an early foundation for a scalable electric fleet that can eventually support cross-border flows. Kargo is committed to electrifying its entire fleet by 2035. To accelerate EV adoption within the logistics sector, Kargo has introduced a dedicated partnership program for shippers and corporate clients. Companies that adopt EV gain significant advantages over conventional fleets. By integrating EV data with the Kargo Nexus platform, shippers benefit from transparent, real-time operational visibility—addressing the efficiency challenges faced by logistics organizations of all sizes. The program also supports corporations with environmental, social, and governance (ESG) and environmental commitments in achieving low-emission logistics operations, turning sustainability targets into measurable operational outcomes. To secure EV supply and support Indonesia’s industrial base, Kargo has signed MOUs with some of the largest EV commercial vehicle brands, including Foton, JAC, Wuling, and VKTR. These original equipment manufacturers (OEMs) have localized their production facilities in Indonesia, contributing to an estimated job creation in the thousands, and reinforcing the country’s position as a regional hub for EV manufacturing and green logistics innovation. With financial support from global banking institutions such as HSBC and financial partners such as Indomobil Finance and Chailease provide structured support for EV fleet financing, enabling the committed EV assets on Kargo’s platform and creating a scalable model for future asset deployment. VinFast collaborates with five partners to strengthen EV after-sales service in Indonesia