Toyota has plans to pump $2 billion into the development of electric vehicles in Indonesia over the course of the next four years, according to a report from Reuters.

The Indonesian coordinating ministry for maritime affairs has confirmed that this is indeed in the making and that the project will kick off with the creation of hybrid vehicles.

Toyota president Akio Toyoda released a statement to the ministry on Thursday in which he said that investment in the development of EVs will be ramped up. A deal between the Indonesian government and the Japanese car manufacturing company was agreed over at a meeting in Osaka this Thursday, with the Coordinating Minister for Maritime Affairs Luhut Pandjaitan and Toyoda shaking on it.

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via autonews.com

“From 2019 to 2023, we will progressively increase our investment to 28.3 trillion rupiah ($2 billion),” Toyoda disclosed.

“Because the Indonesian government already has an electric vehicle development map, Toyota considers Indonesia a prime EV investment destination."

The Toyota president also revealed that the company would stick to the government's EV plan by investing in stages, with the development of hybrid vehicles set to come first. But earlier this month, the self-driving venture between Toyota and SoftBank Corp known as Monet told Reuters that it will begin operating in Southeast Asia in 2020.

Indonesia boasts the region's largest economy and large stores of nickel laterite ore; they've also been keen on attracting foreign car manufacturers. The ore is a key ingredient in the lithium-ion battery packs used to power electric models and, given that they're already Southeast Asia's second-largest car manufacturing location, it is believed that they could become one of the chief producers of lithium batteries now that most car manufacturers are looking to produce a range of EVs.

Earlier this year, the government revealed that it plans to implement a fiscal scheme that will see EV battery producers and automakers handed tax cuts. Preferential tariff agreements with other countries that have a high demand for EVs should also be introduced soon.