Coordinating Minister of Indonesia for maritime affairs said that the Toyota Motor Corp. is planning to invest $2 billion to develop electric vehicles in Indonesia in the coming span of the next four years. The company will start with hybrid vehicles.
Toyota president Akio Toyoda said on Thursday that they will progressively increase our investment to 28.3 trillion rupiahs ($2 billion) in the next four years.
Toyota, with the help of Chinese battery makers to meet the accelerated global shift to electric cars, aimed for 50% of its global sales to be from electric vehicles by 2025, five years ahead of schedule.
Indonesia’s Coordinating Minister for Maritime Affairs Luhut Pandjaitan and Toyoda had an agreement on the confirmation of the deal on Thursday, in a meeting in Osaka.
Toyoda said once that it considers Indonesia a prime EV investment destination as the Indonesian government already has an electric vehicle development map.
According to him, Toyota would follow the government’s EV plan of a stage-by-stage investment, starting with the development of hybrid vehicles.
Monet plans to begin operating in Southeast Asia next year. Monet is the self-driving car joint venture of Toyota and SoftBank Corp.
Indonesia, being the region’s largest economy, has been making a push to attract foreign carmakers as it also has plentiful reserves of nickel laterite ore, a vital ingredient in the lithium-ion batteries used to power EVs.
Officials are betting Indonesia can become a major regional player in lithium battery production and feed the fast-rising demand for EVs, as it is Southeast Asia’s second-largest car production hub.