Investment of Rp 1.3 Trillion: Toyota Strengthens EV Battery Ecosystem - Kompas.id
Core battery components such as cells and modules, which have previously been imported, will now be produced locally by Indonesian workers.
JAKARTA, KOMPAS – Automotive manufacturer Toyota Motor Manufacturing Indonesia (TMMIN) is collaborating with global Chinese battery company Contemporary Amperex Technology Co. Limited (CATL) to develop electric vehicle battery production in Indonesia. The investment for the project is approximately Rp 1.3 trillion.
The partnership was announced at the TMMIN Supplier Convention & Award Presentation held at Nice Convention Exhibition in Pantai Indah Kapuk 2, Tangerang, Banten, on Monday (20/4/2026). The event was attended by Coordinating Minister for Economic Affairs Airlangga Hartarto, TMMIN executives, and Ni Zheng, representative of CATL.
The TMMIN and CATL collaboration is a follow-up to the meeting between President Prabowo Subianto and Toyota executives in Tokyo last March.
TMMIN President Director Nandi Julyanto stated that the collaboration with CATL marks a new chapter in developing the national electric vehicle ecosystem, particularly in the hybrid electric vehicle (HEV) segment.
“We hope this collaboration will have a positive impact on the Indonesian nation, in strengthening the competitiveness of the national supply chain, promoting industrial downstreaming, national economic growth, increasing local content value, and energy resilience. All of this aligns with the national development vision, Asta Cita,” said Nandi.
CATL is a Chinese battery manufacturer and technology company founded in 2011. The company produces lithium-ion batteries for electric vehicles and energy storage systems, as well as battery management systems.
Through this partnership, core battery components such as cells and modules, which have previously been imported, will be produced locally by Indonesian workers. Production is planned to begin in the second half or semester of 2026.
This initiative also serves as an initial step for TMMIN, as Toyota’s first subsidiary in Southeast Asia, to export batteries to global markets.
Nandi emphasised that the multipathway approach remains Toyota’s primary strategy in promoting energy transition in the transportation sector.
Multipathway is Toyota’s comprehensive approach to achieving carbon neutrality through vehicle technologies tailored to customer needs, infrastructure, and energy sources in various regions.
Through this approach, said Nandi, the company offers a range of technologies, from hybrid vehicles or hybrid electric vehicles (HEV), battery-based electric vehicles (BEV), to the development of HEV flexy fuel vehicle technology based on bioethanol.
In recent years, Toyota Indonesia has strengthened its production base for electrified vehicles domestically. Several models such as the Kijang Innova Zenix Hybrid, Yaris Cross Hybrid, and Veloz Hybrid have been produced locally with support from battery production facilities in Karawang. Additionally, production of the pure electric vehicle bZ4X has begun since last year.
To date, Toyota has produced more than 10 million units of vehicles in Indonesia, with around 3 million units exported to over 100 countries. This contribution is supported by cumulative investments exceeding Rp 100 trillion, employment absorption reaching 360,000 people, and a local content level of approximately 80 per cent.
TMMIN Vice President Director Bob Azam stated that the established collaboration is part of realising a long-term investment strategy to strengthen Indonesia’s automotive industry, both for domestic and export markets. Reports on the investment developments have also been submitted to the government through the Investment Coordinating Board (BKPM).
He explained that strengthening industrial competitiveness through battery component development is not done partially, but through cross-country collaborations such as between China, Indonesia, and Japan. This is aimed at enhancing the competitiveness of the domestic automotive industry.
Regarding vehicle prices, Bob assessed that this factor is more determined by market mechanisms rather than the production process alone. Manufacturers focus on manufacturing aspects, while selling prices will follow demand and competition dynamics.
“Selling prices are a market issue. We are in manufacturing; we produce,” he said.
Ni Zheng, Executive President of CATL’s Japan Business Group, who attended as a representative of global CATL, affirmed that they will collaborate to overcome technological challenges, ensure production processes, and quality control to meet Toyota’s needs.
“We will build a more local, sustainable battery ecosystem that contributes to the new energy transition,” he said.
Coordinating Minister for Economic Affairs Airlangga Hartarto emphasised that the Rp 1.3 trillion investment commitment for battery development is a strategic step in accelerating the national battery industry.
“We are pushing our electrification programme to increase the use of batteries domestically. We certainly appreciate this,” he said.
According to him, several automotive industry players that have long operated in Indonesia have also shown progress in increasing local content. Toyota, for example, has achieved a local content level of up to around 80 per cent in some of its products.
Strengthening domestic component levels (TKDN), continued Airlangga, is key to reducing import dependency while creating a sustainable industrial ecosystem.
The TKDN policy that has been implemented has shown positive results in strengthening the domestic industry. This policy will continue as part of the industrialisation strategy.
Along with increasing TKDN, the government affirms that various incentives will continue to be provided to maintain the investment climate and the attractiveness of the national automotive industry.
In addition, the government is preparing national policies.