Indonesia's chief economics minister Airlangga Hartarto released a statement on July 27, 2022 that Japanese carmaker Toyota Motor Corp plans to invest $1.80 billion in Indonesia in the next five years to produce electric vehicles (EVs).
Main reason Toyota has chosen Indonesia to become a global hub for producing and exporting EVs is due to the country's rich supplies of nickel laterite ore for use in lithium batteries.
According to the minister, Indonesia aims to lower its carbon emissions by replacing its vehicles powered by internal combustion engines (ICE) and to sell only electric cars and motorcycles by 2050. The country has also set a target of having 13 million electric motorcycles - including converted ones - and 2.2 million electric cars on its roads by 2030.
No details were given yet as to the location of the plant nor the specifics of the models.
Previously, Hyundai Motor Group and Mitsubishi Motors Corp have pledged to invest in new manufacturing plants to make batteries for electric vehicles in Indonesia due to the nation's rich nickel reserves.