Toyota and Suzuki have pledged to spend at least US$2.9 billion (RM10.55 billion) in Indonesia in the next few years, writes just-auto, citing reports following president Joko Widodo (Jokowi)’s state visit to Japan.

Toyota has pledged to invest US$1.6 billion (RM5.82 billion) to boost capacity and upgrade its Karawang, West Java plant. It plans to triple CKD and CBU exports to 600,000 units a year, which will help offset any future currency volatility as well as increase the group’s exposure to low labour costs. Along with its Daihatsu and Hino subsidiaries, Toyota has over half of the Indonesian market to itself.

Suzuki has reportedly pledged an initial US$1 billion (RM3.64 billion) effective immediately, plus an extra US$300 million (RM1.09 billion) in 2017, to expand car and motorcycle production as well as boost exports from the current 20% of output (nearly 30,000 units a year) to 30%.

Additionally, Suzuki’s spending will go into the production of fuel-efficient vehicles – the target is 34 km per litre for cars with 1.0 litre engines. President Jokowi has promised to offer investment incentives and improve transport infrastructure to ease congestion in and out of the main ports.