Jakarta, July 27 (BNA): The Indonesian Ministry of Economy said that Japan’s Toyota Motor Corporation plans to invest 27.1 trillion rupiah (1 US dollars) in Indonesia in the next five years to produce electric cars.
The Southeast Asian country aims to become a global hub for electric vehicle production and export by processing its rich supply of nickel laterite ore for use in lithium batteries.
A string of other global companies have already announced significant investments in the field including South Korea’s Hyundai Motor Group and LG Energy Solutions, a unit of the LG Group.
Indonesia’s Economy Minister Erlanga Hartarto said in a statement that Toyota has invested 14 trillion rupiah in the country since 2019, Reuters reported.
“I think the demand for electric vehicles, whether they are four-wheelers or two-wheelers, will continue to increase in Indonesia and ASEAN,” Airlanga said after meeting with Toyota Vice Chairman Shigeru Hayakawa the day before in Tokyo.
A minister said Indonesia, with a population of 270 million, aims to sell only electric cars and motorcycles by 2050 to replace combustion-engine vehicles, as the country seeks to reduce carbon emissions.
The nation has also set a goal to have 13 million electric motorcycles — including converted bikes, and 2.2 million electric vehicles on its roads by 2030.
Toyota plans to produce various types of hybrid electric vehicles in its pipeline over the next four years, according to a ministry statement.
“We hope with this additional investment, the Indonesian government will understand our seriousness in investing in electric vehicles,” Toyota’s Hayawaka was quoted as saying in the statement.
Indonesia also announced that Mitsubishi Motors plans to invest about 10 trillion rupiah in Indonesia between 2022 and 2025 to produce hybrid and battery electric vehicles.
Investment commitments by Japanese automakers come as Indonesian President Joko Widodo visits Japan this week to boost economic ties.
ZHB