Toyota to invest a further RM8 billion in Indonesia to build EVs – gears up for expansion in ASEAN region
Toyota is gearing up for a significant expansion into electrification in the ASEAN region, with the automaker announcing that it will be increasing the size of its investment in Indonesia over the next five years. The company said it will be investing an additional 27 trillion rupiah (RM8 billion) in Indonesia until 2027, with the aim of ramping up production of electric vehicles (EVs) in the country.
The pledge was reportedly made by Shigeru Hayakawa, the vice-chairman of the board of directors of Toyota Motor Corporation, when he met Indonesia’s chief economic minister Airlangga Hartarto in Tokyo on Tuesday, the Jakarta Globe reports.
“We hope that with this increase in investment in Indonesia, the Indonesian government will understand our seriousness towards the electrification of motorized vehicles,” Hayakawa said. Meahwhile, Airlangga welcomed the automaker’s move to increase its electric vehicle development plans in Indonesia.
“I believe that the demand for electric vehicles, both four-wheeled and two-wheeled in Indonesia, and ASEAN in the future, will continue to increase. Indonesia can be used as an industrial base for EV production to be marketed in the region,” he said.
The latest planned investment in on top of what the Japanese carmaker has already committed to the country. It has invested 14 trillion rupiah (RM4.19 billion) in the republic since since 2019, when it initially pledged US$2 billion (RM8.26 billion at the exchange rate then) for a project to develop hybrid vehicles.
The carmaker has also been pushing development on related fronts. Last May, it launched the xEV Center, located at its Karawang manufacturing facility. It’s intended to serve as a learning centre for the public on the subject of green technology and the role of Indonesia’s transformation towards electrification, and its goal of minimising emissions through using various means of electrified vehicle options.
Over in Malaysia, the company looks like its ready to up its EV game – a Facebook post shows the presence of new DC fast chargers at the UMW Toyota headquarters in Shah Alam, in preparation for its foray into electrification, which is scheduled for next year when the Toyota bZ4X makes its local debut.