Mitsubishi Motors plans to invest about 10 trillion rupiah ($666.89 million) in Indonesia between 2022 and 2025.
Airlangga Hartarto, Malaysia’s chief economics minister, in a statement said the Japanese company had invested 11.3 trillion rupiah up to 2021 and was planning to expand its production in the Southeast Asian country.
Mitsubishi Motors CEO Takao Kato said the company will produce hybrid electric vehicles and battery electric vehicles in Indonesia.
Mitsubishi is aiming to increase its export capacity from Indonesia to 72,000 units this year and to 98,000 units in 2024, from 42,000 units in 2021.
“Indonesia’s tax rate is actually competitive compared to other countries such as Thailand,” Airlangga Hartarto said.
“However, there are different regional taxes which make taxes seems bigger in Indonesia, this is what we are reviewing at the central government,” Airlangga Hartarto said.