Toyota to invest USD 2 billion to develop EV manufacturing in Indonesia

Toyota aims for half of its global sales to be from EV by 2025

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Toyota to invest USD 2 billion to develop EV manufacturing in Indonesia

Toyota Motor Corporation plans to invest IDR 28.3 trillion (USD 2 billion) to produce electric vehicles (EVs) over the next four years, Indonesian media outlet Tirto reports.

At a round table business meeting in Osaka yesterday, Toyota president Akio Toyoda said that his company is ready to invest in the development of EVs in Indonesia. However, the investment will be made gradually, beginning with funds channeled toward research and development for hybrid vehicle manufacturing. Toyota recognizes that Indonesia already has a road map to support the EV sector from manufacturing to adoption and consumer usage. The country also has a sizable market and strong government leadership, which make Toyota confident about this new investment.

The meeting was attended by Indonesian Coordinating Minister for Maritime Affairs, Luhut Pandjaitan, as well as CEOs and representatives of Japanese companies who are members of the Japanese Foreign Trade Organization.

Toyota has been serious about producing more electric vehicles. The company aims for half of its global sales to be from EVs by 2025.

On this front, Indonesia’s goals for new infrastructure development align with Toyota’s goals. President Joko Widodo had expressed his desire for Indonesia to be one of the main players in the EV industry. He has has encouraged relevant ministries and agencies to settle regulations related to EVs as soon as possible.

In May, Indonesia’s biggest taxi operator, Blue Bird, started operating its first EV taxi fleet in Jakarta. The firm uses BYD e6 A/T cars for regular taxi service and Tesla Model X 75D A/T cars for its premium taxi service Silverbird. Southeast Asia’s ride-hailing giant Grab is also reportedly planning to bring e-vehicles to Indonesia. In February, Grab’s CEO Anthony Tan met with Minister Pandjaitan to discuss Grab’s investment plan for EVs in the country.