Japanese carmaker Toyota Motor Corp TM is reportedly planning to invest $1.8 billion in Indonesia over the next five years to manufacture electric vehicles, according to the country’s Economics Ministry.
Indonesia is planning to tap its rich nickel resources, which are used in lithium-ion batteries, to become a global hub for manufacturing and exporting electric vehicles, reported Reuters.
Also Read: Why Non-Profits Are Urging Elon Musk Not To Invest In Indonesia's Nickel Industry
Talks With Japan: The announcement comes after Indonesia's coordinating minister for maritime affairs and investment Luhut Binsar Pandjaitan urged Japan to invest in the EV industry and other infrastructure projects while asserting that the country is well placed for post-COVID economic growth, reported Nikkei Asia. The talks took place on the sidelines of Indonesian President Joko Widodo's visit to Japan.
The Indonesian president discussed economic co-operation and infrastructure development with Japanese Prime Minister Fumio Kishida in Tokyo on Wednesday.
Interesting Projects: In his presentation, Pandjaitan discussed projects including a large industrial park and EV battery projects in eastern Indonesia. He said details over a potential investment by Tesla Inc TSLA are "being finalized." The minister said the industrial park under development, which will be just 200 km from Indonesia's new capital city, Nusantara, would be a “game changer”.
China, Saudi Arabia, and Abu Dhabi have also expressed interest in participating in the investment, he said.
Read Next: Euro Recovers Partially Against Dollar After 1% Fall: Russia Gas Cut, US Rate Hike Worries Linger
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
