Toyota Partners with CATL in $82 Million Bet to Turn Indonesia into Southeast Asia’s EV Battery Hub

JAKARTA, Investortrust.id — Toyota is doubling down on Indonesia’s ambition to become a global electric vehicle powerhouse. PT Toyota Motor Manufacturing Indonesia (TMMIN), the local manufacturing arm of the Japanese giant, officially announced a strategic partnership with Contemporary Amperex Technology Co. Ltd (CATL) on Monday to develop a full-scale domestic battery production line.

This $81.7 million (Rp 1.3 trillion) investment is a structural shift for the regional automotive industry. By localizing the production of battery cells and modules—components that were previously imported—Toyota is effectively insulating its supply chain from global volatility while transforming Indonesia into its primary battery export base for Southeast Asia. This move directly supports Jakarta’s aggressive "downstreaming" policy, which seeks to keep high-value manufacturing within its borders.

Ending Import Reliance

The partnership focuses on shifting from simple assembly to deep manufacturing. Toyota and CATL aim to master everything from battery assembly packs to the intricate fabrication of cells. Nandi Julyanto, President Director of TMMIN, emphasized in a statement on April 20 that the transition will be powered by local talent.

"Through this strategic collaboration with CATL in Indonesia, we are striving to increase production capabilities from battery pack assembly to comprehensive cell and module manufacturing," Julyanto said. "Battery cell and module components, which are currently imported, will eventually be produced by Indonesian human resources."

The 2026 Export Roadmap

Toyota isn't just looking at the domestic market. The company plans to make TMMIN its first subsidiary in Southeast Asia to export batteries to the global market, with shipments slated to begin in the second half of 2026. This export strategy includes both finished batteries installed in Hybrid Electric Vehicles (HEVs) and standalone battery components.

Bob Azam, Vice President Director of TMMIN, noted that this evolution is revitalizing the existing automotive ecosystem. "This process gradually strengthens the existing supply chain, evolving conventional vehicle manufacturing capabilities into the capacity to produce electrified vehicles comprehensively," Azam stated during the announcement. He added that the shift is attracting new supply chain partners to the country while protecting the 360,000 jobs currently tied to Toyota’s Indonesian operations.

Hybrids Leading the Charge

While the global spotlight often stays on fully electric cars, the data shows that hybrids are the real workhorse of Indonesia’s green transition. According to the Association of Indonesia Automotive Industries (Gaikindo), electrified vehicle sales in the country surged 71% in 2025 to over 177,000 units.

Of the 127,420 electrified vehicles actually produced in Indonesia last year, HEVs accounted for a staggering 76.5% of the total. By securing the battery supply for these hybrids through the CATL partnership, Toyota is solidifying its dominance in the most profitable and fastest-growing segment of the Indonesian market.

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