NAGOYA, Japan -- Toyota Motor and its group companies intend to invest 28.3 trillion rupiah ($2 billion) in Indonesia from 2019 to 2023, including spending to launch production of electrified cars, Nikkei has learned.
In Southeast Asia, Toyota only produces electrified vehicles in Thailand, where it makes plug-in hybrids. But Indonesia, already one of the region's largest auto production hubs, has set a goal of increasing the proportion of electrified autos -- including fully electric models -- to 20% of total output by 2025.
The government is expected to lower corporate taxes for large investors in around 2021, as part of an effort to lure more foreign automakers. Indonesia also has rich reserves of nickel laterite ore, a core ingredient in the lithium-ion batteries that power EVs.
Toyota aims to more than triple annual sales of electrified autos from the 2018 level to at least 5.5 million by 2030, accounting for half its total sales. Hybrids and plug-in hybrids would account for 4.5 million, while fuel-cell and full-electric vehicles would make up the rest.
In March 2017, Toyota President Akio Toyoda met with Indonesian President Joko "Jokowi" Widodo in Jakarta and said the group would invest a total of 25 trillion rupiah in the 2015-2019 period.
Separately, the auto giant has been making a series of strategic moves to support its electrification push. Earlier this month, Toyota announced a partnership with China's CATL, the world's largest automotive battery maker, as well as as BYD, China's leading producer of electric cars.
Nikkei staff writer Eri Sugiura in Tokyo contributed to this report.