JAKARTA (TheInsiderStories) - Japan’ auto-maker, Toyota Motor Corp., is preparing an investment fund up to US$2 billion in indonesia until the next five years, said the CEO Asian Region. The commitment delivered in the virtual meeting between Yoichi Miyazaki with senior economic minister, Airlangga Hartarto, today.
The company plans to create an EV Smart Mobility project as part of supporting the use of electric vehicles (EV) in the eco-tourism ecosystem in Nusa Dua, Bali. The manufacturer will collaborate with the Indonesia Tourism Development Corporation in this project.
He stated, “In the next five years, Toyota has prepared 10 types of electric vehicles for Indonesian consumers. In our business development plan, Toyota prepares Indonesia to become an export hub for Toyota products, not only for the ASEAN region but also for other destination countries.”
Last year, its unit PT Toyota Motor Manufacturing Indonesia (TMMIN) announced to start the EV production in its factory located in Karawang, West Java. The president director, Warih Andang Tjahjono, said a change in the production line is required to run the planned.
The company is attempting to produce hybrid vehicles in Indonesia. Hybrid vehicle is perceived as being better aligned toward the production of electric vehicles since its engine uses both battery and gasoline. The car producer expect to produce the hybrids car starting 2022 with sport utility vehicles and multipurpose vehicles as a start.
President Joko Widodo has said his desired to make Indonesia as an EV hub for Asia and beyond with a target to start the production in 2022 and the share to reached 20 percent of total car production by 2025. Beside Toyota, South Korea’ Hyundai Motor also aimed to invest $880 million in the country to develop EVs in years.
While, Masayoshi Son, the founder of Japanese technology investment giant Softbank Corp., plans to pledge at least $2 billion to support online-based mobility solutions and the development of electric vehicles in Indonesia through Grab Indonesia. Then, Blue Bird Group, the country’ largest taxi operator, resorted to importing Tesla and BYD cars from China to establish its first fleet of electric vehicles.
In addition, Indonesia’ oldest car company, Djawatan Angkoetan Motor Repoeblik Indonesian, or DAMRI has prepared funds around $150 million to replace 500 diesel buses into electric buses within five years period. The electric power sources for battery charging will distributes by the state-owned power producer, PT Perusahaan Listrik Negara.
In the meeting, Hartarto also recommended Toyota to build smelter as raw material for their electric car batteries and promised to support the company in the form of regulations, fiscal and non-fiscal incentives. Now, Indonesia became the largest car market in Southeast Asia with 1.15 million cars sold in 2019.
The government is targeting to export 1 million cars by 2025 from this year target 340,000 units, said the minister.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
