Toyota plans to spend IDR27trn (US$1.8bn) in Indonesia in the next five years to produce electric vehicles (EVs), according to senior Indonesian government officials.
Coordinating minister for economic affairs, Airlangga Hartarto, and industry minister Agus Gumiwang Kartasasmita are in Japan this week to drum up investment with the country’s emerging EV industry a key sector being targeted by the government.
Go deeper with GlobalData
Indonesia, rich in natural resources such as nickel used in lithium-ion batteries, wants to establish itself as a global manufacturing hub for zero emission vehicles.
Earlier this week Hartarto broke the news that Mitsubishi Motors plans to invest around IDR10trn (US$665m) in Indonesia over the next three years to expand its manufacturing capacity, produce EVs locally and increase exports.
Hartarto revealed the latest news following his meeting earlier this week with Toyota executives including vice-chairman Shigeru Hayakawa.
He said: “I believe demand for EVs, whether its four-wheels or two-wheels, will keep increasing in Indonesia and Asean.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataToyota has been accused of dragging its heels in the transition to zero-emission vehicles.
Hayawaka said in a statement: “We hope with this additional investment the Indonesian government understands our seriousness to invest in EVs.”
The investment is expected to bring online a number of hybrid and electric vehicle models over the next five years.
Indonesia aims to switch the domestic vehicle market entirely to zero emission vehicles by 2050, according to local reports, and to have 2.2 million EVs in use in the country by 2030.
A number of foreign companies have already committed investments in the EV supply chain, including battery manufacturers LG Energy Solution and Contemporary Amperex Technology Company Limited (CATL), while Hyundai began limited EV production earlier this year.
