Toyota Motor Corporation says it will be investing 5.4 trillion rupiah (nearly RM1.7 billion) in Indonesia this year for an export-based production plant, according to Indonesia’s Industry Minister Saleh Husin. This is part of a 20 trillion rupiah (around RM6 billion) investment that started in 2015 and will run through 2019. Up until 2014, Toyota has invested around 40 trillion rupiah (RM12 billion) in Indonesia.
Currently, Toyota is constructing an engine plant in Karawang, West Java. When completed, it will be the third Toyota plant in Indonesia, the second in Karawang, with the third located in Sunter. Among the vehicles produced in Indonesia are the new Avanza, Innova and Fortuner, the latter of which will have an increased content localisation from 60% to 75%.
In a report by CNN Indonesia, Husin called on Toyota and other Japanese manufacturers to increase the number of investments in Indonesia’s automotive sector, particularly in the manufacturing of materials and spare parts. He also hopes for an increase in research efforts in the republic to further strengthen the Japanese automotive presence there.
According to data from the Association of Indonesia Automotive Industry (Gaikindo), Toyota commands a large share of the Indonesian market, accounting for nearly 32% of the 1,013,291 vehicles sold in 2015.