Jakarta. The Indonesian arm of the Japanese automaker Toyota has just unveiled a Rp 1.3 trillion ($76 million) investment for a local battery development in partnership with China’s CATL.

In a press statement, the investor Toyota Motor Manufacturing Indonesia (TMMIN) estimated that the recent move should enable the company to begin exporting batteries in the second half of 2026. Shipments will not only encompass batteries installed within their hybrid electric vehicles (HEVs), but the company will also export them as components. Toyota did not say the targeted markets were.

According to TMMIN boss Nandi Julyanto, the company already produces battery packs for the hybrid four-wheelers Toyota Kijang Innova Zenix, Velos, and Yaris Cross in its Karawang plant. TMMIN is now seeking to hike its battery pack production capacity -- including battery cells and modules -- by teaming up with the world’s largest battery producer.

“We are currently importing the battery cell components and modules. The Indonesian workers will [later] produce these components,” Nandi was quoted as saying in the statement.

Toyota claimed to have already invested a colossal Rp 100 trillion ($5.8 billion) over the past 55 years of operating in Indonesia.

Beyond hybrid batteries, Toyota is forging ahead with its plans to set up a bioethanol plant in Indonesia’s Lampung province. Pertamina NRE, the renewable subsidiary of the state-owned energy giant, is Toyota’s partner in the upcoming joint venture.

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Deputy Investment Minister Todotua Pasaribu told reporters on Monday that the project for the bioethanol facility alone had a price tag of “more or less between $200 million and $300 million”. The figure is still subject to change amid reviews, while saying investors would get tax holidays. 

“How Pertamina NRE and Toyota will divide the investment depends on their business-to-business talks. We, the government, are only in charge of facilitating the project,” Todotua said.

Toyota will break ground on this facility no later than Q4-2026 with a target to start production by 2028 -- just in time for Indonesia to execute its plan of including 10% ethanol content in its gasoline. 

Japan’s direct investments in Indonesia reached around $3.1 billion throughout 2025. During his first-ever Tokyo state visit last month, President Prabowo Subianto said that Indonesia “will continue to open up for Japanese participation” in its economy.