Toyota Prepares Rp 20 Trillion Investment in Indonesia Until 2029

JAKARTA, KOMPAS.com – PT Toyota Motor Manufacturing Indonesia (TMMIN) has reaffirmed its commitment to continued investment in Indonesia, including the development of electrified vehicles.

TMMIN President Director Nandi Julyanto revealed that Toyota’s total investment for the 2025–2029 period amounts to Rp 20 trillion.

According to him, this commitment was conveyed during a global Toyota management meeting with Indonesian President Prabowo Subianto in Japan some time ago.

One of the initial realisations of this investment is the development of hybrid vehicle batteries in collaboration with Contemporary Amperex Technology Co. Ltd (CATL).

For this project, Toyota has allocated approximately Rp 1.3 trillion to strengthen domestic battery production.

TMMIN Vice President Director Bob Azam stated that investments in the manufacturing sector cannot be judged solely by their nominal value. The main contribution is seen in the economic impact generated.

“Investments in the manufacturing sector cannot be equated with other sectors. Manufacturing absorbs labour. So even if it seems not too large, the multiplier effect is significant,” said Bob.

He explained that this impact includes job creation, tax contributions, and increased exports.

Amid challenging economic conditions, Bob considers it important to encourage investors already operating in the country.

This approach is deemed more effective than attracting new investors, who typically require various incentives.

“If new investors enter, they certainly need facilities like tax holidays. In the current situation, what needs to be encouraged is existing investors,” said Bob.

“Meanwhile, machinery and technology must continue to be updated, and the investment is not insignificant,” he added.

“Indeed, the value is Rp 1.3 trillion, but the multiplier effect must be considered. There is labour, development of expertise in the battery field, export potential, up to R&D,” he stated.