Toyota has plans to start electric vehicle (EV) production in Indonesia, and will be investing US$2 billion (RM8.26 billion) into the project over the next four years, beginning with the development of hybrid vehicles. Indonesia’s coordinating ministry for maritime affairs said the deal was agreed at a meeting in Osaka last Thursday between its minister Luhut Pandjaitan and Toyota president Akio Toyoda, Reuters reports.
In a statement released by the ministry last week, Toyoda was quoted as saying that the automaker considers Indonesia a prime EV investment destination because its government already has an EV development map. “From 2019 to 2023, we will progressively increase our investment to 28.3 trillion rupiah,” Toyoda was reported to have said in the statement.
He added that the company would follow the government’s EV plan by investing in stages, starting with the development of hybrid vehicles. The ministry’s statement however disclosed no details on how Toyota would implement its investment plans.
Indonesia has been making a strong push to attract foreign automakers. Earlier this year, it announced a new EV policy, which will offer tax cuts to EV battery producers/automakers and preferential tariff agreements with other countries that have a high EV demand. Last year, it was reported that Hyundai was planning to invest US$880 million (RM3.63 billion) in the republic and start producing EVs in that market.
Indonesia has plentiful reserves of nickel laterite ore, a vital ingredient in the lithium-ion batteries used to power EVs, and its officials are betting the country can become a major regional player in lithium battery production, which will be much needed to feed the fast-rising demand for EVs.
Analysts are however cautious on how fast the country’s EV ambitions can be carried out, as some of the required nickel smelter technology for its lithium battery projects are complicated.
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Maju lah Indonesia.
Habislaaa… I wonder why Proton are to scared to release their game changing Proton Iriz EV. If only Proton launched it years ago, I will definitely bought it as I am a Patriotic Malaysian who support Barang Buatan Malaysia. So sad today Iriz EV game over already…
I wonder if you are even Malaysian given your past comments.
Toyota said that the automaker considers Indonesia a prime EV investment destination because its government already has an EV development map. Hello… Malaysia NAP since 2013 to promote EV and Energy Efficient Vehicle EEV production hub. Bukan sembang larr
after thailand muju coz get foreign investment from BMW, Singapore maju coz dyson built up their ev over there, now indon maju coz toyota built up their plant over there..
Yeah, malaysia still sore loser..
Our PM wants us to make flying CAR-pet. Lol!
What? The new government keep on losing investment from foreign investors. Both Thailand and Indonesia are booming, and look at where we are right now.
This country is going down the drain. I miss the old government.
yeah… they call the old gov as perompak etc, but that perompak gov is the one who keep bringing in foreign investments. now, the new gov only know how to sell assets, then call it as foreign investment.
RM8.3 Bil?!! where is that MAI Madani
Toyota EVs? can it fly? NO.
We have flying car project. Can it see the day? Most likely No.
sedih …
congrats indonesia