Boosting Electric Cars In Indonesia, Automotive Giant Toyota Invests IDR 28.28 Trillion

JAKARTA - The Japanese automotive giant Toyota is preparing plans for the development and production of electric vehicles until 2025. Especially in Indonesia, Toyota has prepared an investment fund of up to 2 billion US dollars, or the equivalent of IDR 28.28 trillion (exchange rate of IDR 14,100).

Asia Region CEO of Toyota Motor Corporation, Yoichi Miyazaki, said this was done as a full commitment to support the Indonesian government's efforts to reduce emissions and reduce oil imports for motorized vehicles.

"At least, in the next 5 years, Toyota has prepared 10 types of electric vehicles for Indonesian consumers. Toyota's vehicle technology is also ready to support the implementation of B30 in Indonesia," he said, in a written statement received by VOI, Wednesday, December 9.

Yoici said the development and production of this electric car was also in line with the prediction that fuel consumption would decline to 126 million liters of fuel by 2025.

In addition, Toyota management also welcomes the Omnibus Law on Job Creation which is expected to improve the investment climate and expand employment opportunities in Indonesia.

"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, so that we really prepare the supply chain and human resources," he said.

On the same occasion, Coordinating Minister for the Economy Airlangga Hartarto said the Job Creation Law was targeted to be a solution so that Indonesia could escape the middle income trap.

Airlangga said, employment is a separate problem for Indonesia, due to limited employment opportunities in the country. Moreover, Indonesia is facing a demographic bonus or an increase in the number of productive age population.

"The government welcomes the investment plan that will be carried out by Toyota, with the hope of creating jobs and also increasing the skills or expertise of the Indonesian workforce," he said.

Not only that, said Airlangga, the government also welcomed Toyota's plan to create an EV Smart Mobility project in Bali as part of supporting the use of electric vehicles in the eco-tourism ecosystem in Nusa Dua, Bali. Toyota will cooperate with the Indonesia Tourism Development Corporation or ITDC Nusa Dua.

Airlangga said, the reason Bali was chosen as the project location is because it is in line with the Regional Government which has issued Governor Regulation Number 45 of 2019 concerning clean energy and electric vehicles.

"To support the sustainability of a sustainable business model and also to increase the ecotourism of Bali Island, the government recommends downstreaming nickel products as raw material for electric car batteries for the development of the national battery-based electric motor vehicle (KBL-BB) industry," he said.