Jakarta – Toyota Motor Corporation, the largest car company in the world, plans to increase its investment in Indonesia over the next five years to tap into the Southeast Asian country's burgeoning electric vehicle industry.
Shigeru Hayakawa, the vice chairman of the board of directors of Toyota Motor Corporation told Coordinating Minister for Economic Affairs Airlangga Hartarto when they met Tuesday that the company would invest Rp 27.1 trillion ($1.8 billion) until 2027.
The company has invested Rp 14 trillion in Indonesia since 2019 after President of Toyota Motor Corporation Akio Toyoda promised $2 billion, or Rp 29.9 trillion, in investments between 2020 and 2025 to President Joko "Jokowi" Widodo at their meeting Osaka Summit that year.
"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.
Airlangga welcomed Toyota's plan for a larger investment in electric vehicle development in Indonesia.
"I believe that the demand for electric vehicles, both four-wheeled and two-wheeled in Indonesia and the Asean in the future, will continue to increase. Indonesia can be used as an industrial base for electric vehicle (EV) production to be marketed in the Asean and in Indonesia itself," Airlangga said.
In the meeting, Hayakawa and Airlangga also discussed Toyota's initiatives to improve Indonesian engineer capabilities.
Toyota built the xEV Center last May, providing local engineers training on automotive electrification and digitalization. In collaboration with state energy company Pertamina and the state mining holding company Inalum, Toyota also helps improve local engineers' expertise in the battery industry.
Toyota Indonesia and technicians from Indonesia also developed the Kijang Innova BEV concept to study technology and conditions to prepare for more tangible use by people in Indonesia.
Airlangga expected Toyota's electric vehicles to serve delegates at the G20 Summit in November.
Also present at the meeting were the Minister of Industry Agus Gumiwang Kartasasmita, the Indonesian Ambassador in Tokyo Heri Ahmadi, President Director of Toyota Motor Manufacturing Indonesia Warih Andang Tjahjono, and several Indonesian high-ranking officials and Toyota's executives.