- Toyota and CATL invest IDR 1.3 trillion to localize battery production in Indonesia.
- Indonesia to become export hub for Toyota battery components from 2026.
PT Toyota Motor Manufacturing Indonesia (TMMIN) announced on April 20, 2026, a strategic collaboration with Contemporary Amperex Technology Co. Ltd. (CATL) aimed at strengthening the electrified vehicle battery ecosystem in Indonesia. The partnership focuses on enhancing domestic battery production capabilities while reducing reliance on imported components. Backed by a planned investment of IDR 1.3 trillion, the initiative is designed to develop multiple stages of the battery supply chain, ensuring a gradual shift toward localized manufacturing across cells, modules, and supporting components.
Localization Strategy to Strengthen Battery Supply Chain
The collaboration marks a significant step toward building a vertically integrated battery ecosystem in Indonesia. Initially dependent on imported materials and components, the plan outlines a phased transition to domestic sourcing, allowing both companies to improve cost efficiency and supply chain resilience. By expanding into battery cell and module production, TMMIN and CATL aim to establish a sustainable manufacturing base that supports the country’s growing electrification ambitions while aligning with regional industrial development goals.
Existing Manufacturing Capabilities and Hybrid Focus
TMMIN already operates battery pack production at its Karawang facility, supporting hybrid vehicle models such as the Kijang Innova Zenix, Veloz, and Yaris Cross. This existing capability provides a strong foundation for scaling operations into more advanced battery technologies. The new initiative builds upon Toyota’s longstanding presence in Indonesia, where cumulative investments have reached approximately IDR 100 trillion over more than 50 years. The expansion reflects a broader strategy to deepen localization and support hybrid and electrified vehicle growth.
Export Plans and Regional Leadership Positioning
As part of the expansion roadmap, TMMIN is preparing to begin exporting batteries and related components in the second half of 2026. This move will position the company as the first Toyota subsidiary in Southeast Asia to export battery products, reinforcing Indonesia's role as a regional manufacturing hub. The export initiative is expected to strengthen supply chain integration across global markets while enhancing the country’s competitiveness in the electrified mobility sector.
Frequently Asked Questions
What is the objective of the PT Toyota Motor Manufacturing Indonesia and CATL partnership?
The partnership aims to strengthen Indonesia’s EV battery ecosystem through localized production and supply chain development. It focuses on expanding battery manufacturing capabilities, including cells and modules, while reducing reliance on imports. Backed by an IDR 1.3 trillion investment, the collaboration supports domestic industrial growth and positions Indonesia as a key player in the regional electrification landscape, including future battery exports.
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