The companies' joint venture PT Energi Kreasi Bersama (Electrum) said the plant was expected to start production by 2024 and make 250,000 units a year. It did not disclose the total investment that will go into the West Java factory, which will include a research centre and testing track.

GoTo, which is among Southeast Asia's largest ride-hailing and e-commerce firms, said the plant was a major step toward transforming its entire fleet into electric vehicles by 2030.

TBS Energi said the plant would help gradually reduce the company's exposure to fossil fuels and reach net-zero carbon emissions in 2030.

Last year, it allocated $350 million for the Electrum JV through to 2025. It is also setting aside $150 million for renewable energy projects, it said.

Indonesia is ramping up investment in electric vehicle and battery production as part of efforts to reach net-zero emissions by 2060.

(Reporting by Ananda Teresia; Editing by Kanupriya Kapoor)