Indonesia’s economic affairs ministry said Wednesday that Toyota Motor Corporation plans to boost investment in the country, allocating IDR 27.1 trillion ($1.8 billion) to EV development, Kallanish reports.

The new investment, slated for the next five years, complements the IDR 14 trillion investment Toyota announced in 2019 for Indonesia. The plan is to contribute to emission reduction and the imports of fossil fuels by popularise the use of EVs in the country. Toyota intends to add several types of hybrid electric vehicles (HEVs) to Indonesian roads, as well as help develop a skilled workforce geared for e-mobility.

“I believe that the demand for electric vehicles, both four-wheeled and two-wheeled in Indonesia and in the ASEAN region in the future, will continue to increase,” says minister Airlangga Hartarto. “Indonesia can be used as an industrial base for electric vehicle production to be marketed in the ASEAN region and in Indonesia itself.”

Additionally, the Japanese carmaker is also developing the Kijang Innova BEV concept to study technology and conditions to enable higher penetration in the local market. Further details about this project weren’t disclosed.

“We hope that with this increase in investment in Indonesia, the Indonesian government will understand our seriousness towards the electrification of motorised vehicles,” Toyota’s vice-chairman Shigeru Hayakawa is quoted as saying in the statement.

The Indonesian officials have been meeting with Japanese counterparts and companies to discuss bilateral relations. On 26 July, it announced Mitsubishi would invest IDR 10 trillion by 2025 to diversify its products to the Indonesian market, including PHEVs and BEVs.