JAKARTA , Indonesia: Plans call for a Chinese consortium to invest $5 billion in an electric battery manufacturing facility, according to an Indonesian minister.
Among the investors would be China's Contemporary Amperex Technology (CATL).
Indonesia state-owned enterprises minister Erick Thohir spoke of the agreement with CATL during a visit to China this week. He said the plant would begin producing electric batteries in 2024.
On Friday Indonesia included electric vehicles among those autos receiving tax breaks.
"The government sees that stimulus for the middle class has a big potential to boost consumption," the government said in a statement late on Thursday.
Officials note that car sales have recovered, after a significant drop at the beginning of the coronavirus pandemic. Total sales in 2020 were just over 532,000 units, about half of the previous year.
Indonesia's auto market is dominated by Japanese brands, with Toyota, Daihatsu, Mitsubishi and Honda leading in sales.