Toyota Motor Manufacturing Indonesia (TMMIN) has formed a partnership with Contemporary Amperex Technology Co. Ltd (CATL) for electric vehicle (EV) battery manufacturing in Indonesia. 

As part of the collaboration, TMMIN is committing Rp1.3tn ($75.8m) to support Indonesia’s EV ecosystem, including development of the battery supply chain from raw materials through to finished products.

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The battery project is linked to what the company calls its “Best in Town” approach, under which it aims to strengthen domestic industrial capability in ways that align with government priorities for national development. 

TMMIN said the initiative is expected to help speed up the transition towards carbon neutrality through a multi-pathway strategy.  

That framework covers hybrid electric vehicles, plug-in hybrid electric vehicles, battery electric vehicles, fuel cell electric vehicles, and flexible fuel vehicles using bioethanol blends, reflecting differing mobility needs in the Indonesian market. 

The company said the development will also position TMMIN as the first Toyota subsidiary in South East Asia to export batteries to overseas markets, with exports due to start in the second half of 2026. 

Those exports are set to include not only batteries used in HEV models, but also battery components, as Indonesia seeks to deepen its role in the global supply chain for vehicle electrification. 

TMMIN president director Nandi Julyanto said: “Currently, TMMIN has a battery pack production line at its Karawang plant to produce batteries for the Toyota Kijang Innova Zenix HEV, Veloz HEV, and Yaris Cross HEV. Through a strategic collaboration with CATL in Indonesia, we are striving to increase the production capacity of battery assy packs to the overall manufacturing of battery cells and modules.

“The battery cell and module components that are currently imported will later be produced by Indonesian human resources. This partnership will not only increase investment but also support Toyota’s multipathway initiative towards carbon neutrality by strengthening the local supply chain.”

Citing figures from GAIKINDO, the Indonesian Automotive Industry Association, TMMIN said that sales of electrified vehicles in Indonesia reached 177,367 units in 2025, rising 71% from 103,452 units in the previous year.

Production of electrified vehicles totalled 127,420 units during the same period.  

Of that amount, 99,162 units were directed to the domestic market, while local manufacturing accounted for around 55% of overall sales.  

Hybrid electric vehicles were the largest contributor, with 97,462 units produced, representing about 76.5% of Indonesia’s total electrified vehicle output in 2025.