Indonesia is currently on the receiving end of very convenient foreign direct investment as the government’s electric vehicle roadmap fuels the rapidly growing attractiveness of the country’s auto industry. Investvine just reported that Japan’s Mitsubishi Motors will invest $667 million in Indonesia to expand its existing production facility, with a focus on electric vehicles. The news came shortly after news emerged that leading Japanese automaker Toyota plans to invest 27.1 trillion rupiah ($1.82 billion) in Indonesia over the next five years to produce various types of hybrid electric vehicles. , Indonesia’s Chief Economic Minister Airlanga…
Indonesia is currently on the receiving end of very convenient foreign direct investment as the government’s electric vehicle roadmap fuels the rapidly growing attractiveness of the country’s auto industry.
investment rattan only report Japan’s Mitsubishi Motors will invest $667 million in Indonesia to expand its existing production facility with a focus on electric vehicles.
Just after the news broke, leading Japanese automaker Toyota plans to invest 27.1 trillion rupiah ($1.82 billion) in Indonesia over the next five years to produce various types of hybrid electric vehicles, Indonesia. Chief Economic Minister Airlangga Hartarto said July 27.
The investment is on top of the 14 trillion rupiah that Japanese companies have invested in Indonesia so far.
Nickel Abounds
Industry analysts said the two companies were attracted by Indonesia’s goal of becoming a global hub for the production and export of electric vehicles by processing its abundant laterite nickel ore for lithium batteries.
Another major investment commitment in Indonesia comes from South Korean steel giant POSCO.
On July 28, POSCO and Indonesian partner Krakatau Steel reached an agreement to invest US$3.5 billion to expand its production capacity in the country. Under the agreement, the joint venture Krakatau Posco’s production capacity will be increased to 10 million tonnes per annum of upstream and downstream products currently at 3 million tonnes.
Increased production of automotive steel
In a separate statement on the deal, Indonesia’s investment ministry said the expansion will begin next year, including the production of automotive steel for electric vehicles.
POSCO is also involved in a $9.8 billion project to build an electric vehicle supply chain in Indonesia to tap into the country’s rich nickel reserves. The project is led by another Korean company, LG Energy Solution.
