Toyota Still Committed to Invest Rp. 28.3 Trillion in Indonesia

Published 23 November 2022 | 08:21 am

JAKARTA, KOMPAS.com – Coordinating Minister for the Economy Airlangga Hartarto stated that the Toyota Group has prepared an additional investment of US$ 2 billion or around Rp. 28.3 trillion in Indonesia in the next five years.

The large investment will be used by the company to support the development of electric motorized vehicles which are currently experiencing development. At the same time, supporting the government’s target of achieving Net Zero Emissions in 2030.

“Indonesia is the largest market for motorized vehicles in ASEAN. However, the car ratio of R4 (four-wheeled vehicles) in Indonesia is still relatively low, which is 99 percent per 1,000 population, indicating that the automotive industry still has great potential for growth,” said Airlangga in his official statement, Tuesday ( 22/11/2022).

Just look at it, based on data from Gaikindo in October 2022, sales from factories to dealers (wholesales) were recorded to have grown 23.37 percent on an annual basis or reached 93,190 units.

From the production side, the utilization of the motor vehicle industry in October 2022 recorded an achievement of 69.2 percent, which has increased higher than during the pandemic which averaged only 40 percent.

Meanwhile, according to the same data, sales of electric cars, which include hybrid cars, plug-in hybrids and battery electric vehicles (BEV), reached 4,311 units. This figure has almost doubled from the previous month, namely 2,909 units.

A similar situation is also taking place in the world so that the potential for electric vehicles is enormous. It is estimated that the demand for electric cars in the world will reach 55 million units by 2040 (Bloomberg data).

To seize this opportunity as well as support the agenda of the Conference of Parties on Climate Change (COP21), Indonesia has issued Presidential Regulation (Perpres) Number 55 of 2019 concerning the Acceleration of Battery-Based Electric Motorized Vehicles (KBL BB) / BEV for Road Transportation.

Going forward, the industrial sector is expected to be able to continue to grow and this is reflected in the Indonesian Manufacturing Purchasing Manager Index (PMI) which has again expanded to a level of 51.8 in October 2022 or continues an expansive trend for 14 months in a row.

In addition, the Toyota Group has also prepared the xEV Center facility ‘The First Electrification Learning Center’ as public advocacy for electrification.

This facility will be upgraded as a capability center to prepare Indonesia’s future human resources and expertise towards the electrification era which is in line with Government policies.

“We congratulate TMMIN for the production of the first local Indonesian electrification vehicle for the world, namely the Toyota Kijang vehicle. Hopefully this will help encourage the creation of a sustainable EV ecosystem. I also hope that later other types of cars, both SUVs and MPVs, can use EV technology,” Airlangga said.

Source: SUMBER