Through the coordinating minister for Economic Affairs, Airlangga Hartarto, Indonesia has secured fresh investments from Japanese automakers Mitshubishi and Toyota totaling Rp 37.1 trillion (US$2.48 billion).
According to Hartato, demand for EVs in Indonesia and ASEAN will continue to rise, whether they have four wheels or two.
In order to produce electric automobiles, Toyota Motor aims to invest Rp 27.1 trillion in Indonesia over the next five years (EVs). In a statement, Hartarto said that Toyota has made investments of Rp14 trillion in Indonesia since 2019.
Toyota plans to manufacture new hybrid models over the coming years so that the Indonesian government can demonstrate their dedication to renewable energy.
Shigeru Hayawaka, vice chairman of Toyota, stated in the release, “We believe with this new investment, Indonesia’s government realizes our seriousness to invest in EVs.”
Takao Kato, the CEO of Mitsubishi, also stated that the business would soon introduce a new electric vehicle (EV). More precisely, Mitsubishi wants to help Indonesia achieve carbon neutrality by 2060 by producing hybrid and battery electric vehicles there.
According to Hartato, the Japanese automaker has invested Rp11.3 trillion (about US$754 million) for all of its Indonesian operations through the fourth quarter of this year. After visiting Takao Kato in Tokyo on July 26, he stated in an official release, “The aim is Mitsubishi Motors Corporation would invest roughly Rp10 trillion from 2022 to 2025.”
Hartarto noted that the tax imposed by the Indonesian government is roughly as competitive as that of any other nation, such as Thailand, while talking about export incentives for Mitsubishi’s goods.
In answer to Takao Kato’s inquiry, “However, because regional taxes vary in quantity, it appears that taxes in Indonesia are higher. This is what the central government in Indonesia is teaching us, “Hartarto threw in.
The most commonly discussed subject is incentives since they are seen as a catalyst for the development of HEVs and/or BEVs.
President’s Executive Order No. 55, 2019.
Indonesia doesn’t have a comprehensive incentive plan as Thailand does. In select EV-focused localities, the Thai government offers additional incentives for EV manufacture, including infrastructure for EV batteries and charging.