Toyota Concept i-RIDE (Image credit: Global Toyota)

Toyota plans to invest $2 billion in Indonesia for developing electric vehicles

The Japanese automotive company, Toyota Motor Corp, is going to invest 28.3 trillion rupiahs for developing electric vehicles (EV), especially hybrid vehicles in Indonesia over the next four years, said Minister of Industry Airlangga Hartarto.

Toyota will increase its investment amount to $2 billion or 28.3 trillion in Indonesia currency, starting from 2019 to 2023, according to a statement from President of Toyota Akio Toyoda, quoted by Indonesia’s coordinating ministry for maritime affairs on Thursday.

The agreement was made during a meeting between Indonesia’s Coordinating Minister for Maritime Affairs Luhut Pandjaitan and Toyoda in Osaka on Thursday.

According to the company president, Toyota thinks Indonesia can be the main investment destination for EV because the government has an electric vehicle development map right now.

A study of the development and utilization of electric vehicles had been conducted by the Ministry of Industry Indonesia and one of the Japanese carmakers. Six universities in Indonesia were involved in the activity.

The findings showed hybrids are considered to be an alternative due to the well to wheel in which the energy ecosystem generation is also viewed, beginning at primary energy to the driving of automotive, said the Ministry of Industry.

The ministry also suggested developing electric vehicle technology in domestic, such as producing fuel cells.

Previously in early 2019, Indonesia revealed a fiscal outline that will offer tax cuts to battery makers and automakers of EV and preferred tariff agreement with other countries who have a huge demand on EV.

Later in 2020, a self-driving car from a joint venture of Toyota and SoftBank Corp, Monet will start operating in Southeast Asia, according to Reuters.

Source: https://www.reuters.com/article/us-toyota-indonesia/toyota-to-invest-2-billion-in-developing-electric-vehicles-in-indonesia-idUSKCN1TS1SL