Toyota, Suzuki to spend US$2.9 bil total in Indonesia

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.

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Jonathan James Tan

While most dream of the future, Jonathan Tan dreams of the past, although he's never been there. Fantasises much too often about cruising down Treacher Road (Jalan Sultan Ismail) in a Triumph Stag that actually works, and hopes this stint here will snap him back to present reality.

 

Comments

  • Malaysia Losing to Indon on Apr 10, 2015 at 3:25 pm

    Yet another blow to Malaysians and a few thousand or maybe tens of thousands jobs are lost because Toyota has chosen Indon. Soon, we have to send Malaysian maids to .Indon to work

    Malaysians have already suffered so much. For 30 years, 30 million people suffer so much. We struggle paying for our high car prices all because of one man’s dream of benefiting his friends and relatives through the AP system and the government protecting Proton.

    Malaysia was on its way to becoming the Detroit of Asia in the 90s. But the AP system cost us hundreds of billions in ringgit in investments from car companies who moved to Thailand and Indonesia. Car companies got fed up with Malaysia’s MITI for protecting Proton and telling other companies what to price their cars. They got sick and tired of the AP system and how genuine brands cannot get enough APs to import their cars in (like Mercedes, BMW and Honda).

    They thought that if they set up their brands and plants in Malaysia, they knew they had to share the pool of APs with the cronies and they knew 90% of all APs go to the cronies. They all moved their operations to Thailand making it the AutoCity of the world.

    Recently GM announced that they rolled out already 1 million cars from Thailand. Imagine if GM was in Malaysia and we taxed GM RM10,000 per car. Calculate that with 1 million cars. Just from GM alone, we lost Billions in USD. Imagine what will the amount be from other car companies if they had set up in Malaysia?

    Because of Mahathir and his AP system, as well as Proton, we lost hundreds of billion of ringgit in investment and trillions of ringgit from jobs lost. If Malaysia was the autocity of Asia, hundreds of thousands of jobs would have been created for Malaysians. We lost all that. Trillions of Ringgit and hundreds of thousands of jobs. Now, Thailand and Indonesia is benefiting from this trillions lost.

    So, in summary, the 30 PEKEMA AP members and Proton have solely caused Malaysia to lose trillions in investments.

    A word of caution to the idiots at MAI and the idiots in MITI, Malaysia might even lose existing companies who are already CKDing in Malaysia. BMW, Mercedes, Nissan, Honda and Toyota might even close up their plants in Malaysia to open up in Thailand.

    This is so worrisome. Despite Thailand having an unstable economy with riots and bombing, no stable government, yet car companies still prefer Thailand to Malaysia. Makes us wonder…..what is wrong with Malaysia?

    Well-loved. Like or Dislike: Thumb up 72 Thumb down 4
    • Tahniah MAI! on Apr 10, 2015 at 3:38 pm

      MAI and MITI job is to ensure investment coming into Malaysia. Past few years ZERO investment. All go to Thailand and Indonesia.

      Infact, hundreds of millions are spent to pay the MAI and MITI staff to travel Business Class all over the world to learn about cars.

      Maybe its time to close MAI down?

      Like or Dislike: Thumb up 50 Thumb down 1
      • Filipina Malaysian on Apr 10, 2015 at 3:45 pm

        Indon PM go worldwide to promote his country. Our PM buy RM500 plane, despite having 6 other private planes!

        Like or Dislike: Thumb up 37 Thumb down 1
        • Gargantia on Apr 10, 2015 at 4:44 pm

          RM500 millions Jet and Billions lost in 1MBD.

          Most development country has Human Right Policies… This Bolehland Malaysia only care for “Cronies Right”.

          PM says Rakyat no burden just keep paying Gst6%, Rakyat died not his problem.

          Like or Dislike: Thumb up 36 Thumb down 0
          • Close Down Proton on Apr 10, 2015 at 5:07 pm

            Why are we still wasting millions of dollars to “protect” Proton? This company is making Malaysia a loser

            Like or Dislike: Thumb up 34 Thumb down 1
          • skiill on Apr 10, 2015 at 6:15 pm

            You should Japs the same question saving their companies

            Like or Dislike: Thumb up 3 Thumb down 8
          • I met Same Lorrrr!!!!! on Apr 11, 2015 at 2:36 pm

            Don’t worry, we lose money from cars but sales of undergarments now doing better with Same Lorrr selling bra and panties in Parkson.

            Like or Dislike: Thumb up 1 Thumb down 3
    • Filipina Malaysian on Apr 10, 2015 at 3:44 pm

      Philippines in the 70s was doing so well, everybody wanted to migrate there. Go ask your granddad. The economy of Philippines was so strong.

      We are on our way to become Phillipines.

      Like or Dislike: Thumb up 17 Thumb down 1
    • London Owned by Malaysians! on Apr 10, 2015 at 3:48 pm

      Government got no money now. All sapu left right and center. Now on the verge of going bankrupt.

      When I was buying a property in London recently, I had to go to the Land Registry to sort out some matter.

      The guy at the counter told me, half of London is owned by Arabs and Hong Kong people (China included) and the other half is owned by Malaysians.

      He was surprised and told me, it is mainly government servants from Malaysia who buy mult-imillion pound West End London properties. He said some don’t just buy one or 2 but a few each.

      I asked him whether it could be EPF as EPF has invested in London, he said he knew about EPF investing in London but these were individuals buying into London West End property.

      I wonder how a government servant in Malaysia can buy a 1.5 million pound apartment in London (average price). And that also, some buy a few!

      I really want to join Government now. Leave my job as a Doctor and join Putrajaya. If Government servants like this, I really don’t know about politicians. Maybe castles and ranches!

      Like or Dislike: Thumb up 23 Thumb down 2
    • tokmoh. on Apr 10, 2015 at 4:12 pm

      We should all buy Proton, it’s as good as BMW and as safe as Volvo. Apa lagi rakyat mau?

      U tak suka, u keluar pergi Thai.

      For me, I suka Volvo, I also told to balik tongsan. Wanna stay here, must cukur and buy Proton only. Cannot buy any other car, they all lousier than Proton. Proton is the best car in the world, so no need care about foreigners.

      Like or Dislike: Thumb up 15 Thumb down 4
    • Gold Avanza on Apr 10, 2015 at 4:22 pm

      Tan Sri-ship to be awarded for MAI CEO soon for job very well done. You deserve to retire at TURUS level pension package. Everytime bonus pencen come in you can smile saying other people so silly didn’t work in gomen.

      Next CEO to ensure Potong outsources all operations to Bangladesh.

      Like or Dislike: Thumb up 6 Thumb down 0
    • true sad fact on Apr 11, 2015 at 9:33 am

      I used to think Proton screw us but after some mature research i don’t think so.

      1) Our CKD-assembly sedan car is 20% more expensive than CKD-manufactured Thai. That because Thai CKD car have more local parts which make them cheaper. Same as Indon their Avanza/Innova is cheaper but their Corolla more than us.

      2) In the 90s, Malaysia isn’t the only country that CKD assembly foreign car. Indon already have their fully local built Toyota Kijang in 70s. Also in 70s Thai increase the tax for CBU car and completely banned CBU car in late 70s until mid 80s to forced foreign car manufacture to set up local CKD plant.

      3) Cost and productivity, how much the labour cost and productivity of Thai and Indon compare to us? Our factory must close 2.5 hours every friday and 3 prayer breaks everydays.

      4) The population of Malaysia compare to 65million Thai and 250million Indon. Just 10% of upper/middle class in Indon is already double of upper/middle class in Malaysia.

      Like or Dislike: Thumb up 7 Thumb down 1
  • Jokerwi on Apr 10, 2015 at 3:28 pm

    Tahniah MITI and DrM bapa industri otomotif Indonesia! clap::clap::clap::

    Like or Dislike: Thumb up 22 Thumb down 2
    • BN fanboys on Apr 10, 2015 at 3:46 pm

      Waiting for all the BN fanboys to come here and talk rubbish.

      Bang, do something for your country la. Don’t just wait for contracts!

      Like or Dislike: Thumb up 12 Thumb down 2
      • humanrsrc on Apr 10, 2015 at 6:23 pm

        No wonder you dun get contract, wasting time here instead of looking for one!

        Like or Dislike: Thumb up 3 Thumb down 1
    • tokmoh. on Apr 10, 2015 at 4:04 pm

      FDI industri otomotif sini turun, kenapa tak puji kerajaan? Oh waiiiiiii

      Like or Dislike: Thumb up 1 Thumb down 0
  • CKD Close shop Soon! on Apr 10, 2015 at 3:29 pm

    Many car companies in Malaysia, CKDing for the past 30 years are now thinking of closing shop and moving to Thailand and Indonesia. Looks like the NAP and MAI’s vision for Malaysia is really working.

    Syabas MAI. Syabas MITI. Soon, when Toyota, Honda and Tan Chong decide to tutup kedai and set up base in Thailand and Indonesia, we will lose a FEW hundred thousand jobs.

    Let us continue to pay high remuneration to the MAI staff for their brilliant vision that has proved a success. Most MAI and MITI staff now earn about RM15k each because their ideas are so brilliant.

    This sounds like TalentCorp.

    Like or Dislike: Thumb up 23 Thumb down 0
  • MalaysianCitizen on Apr 10, 2015 at 3:32 pm

    The beginning of the rise of Indonesia and the fall of Malaysia. How wonderful…

    Like or Dislike: Thumb up 22 Thumb down 2
    • 1MDB (Malas Dolop Bodoh) on Apr 10, 2015 at 3:51 pm

      We have RM50b scandal. We have RM800billion debt. Soon, we will collapse.

      Like or Dislike: Thumb up 19 Thumb down 1
  • CKD Close shop Soon! on Apr 10, 2015 at 3:36 pm

    Very soon, we will only have Proton and Perodua in Malaysia only. Most other brands rather set up in Thailand and Indonesia.

    Even Mercedes and BMW is said eventually will close shop here because its not cost effective. Too much under the table money and too much of Government directive.

    Half the time Mercedes and BMW are told by the Government to sponsor this la and that la. Supply 20 BMWs for LIMA la, supply 1000 BMWs for Sime Darby staff la yearly, supply 100 BMWs for this meeting la.

    How to make money?

    Half the time BMW and Mercedes have to supply free cars to all the official events to ferry the delegates. After that event, sell the cars half price to some Datuk, Tan Sri or Crony.

    How to make money?

    Like or Dislike: Thumb up 21 Thumb down 1
    • Madani on Apr 10, 2015 at 4:57 pm

      Leave Proton itself enough lol. No competition, lagi best. After all, Proton is “BMW of Asia”. Need real BMW for what? Rakyat can everyday drive “BMW”, summore got safety of “Volvo”

      Like or Dislike: Thumb up 7 Thumb down 1
      • gonnahate on Apr 10, 2015 at 6:34 pm

        Butthurt? Why not, Preve ady got 5 star, not from Asean but Australian NCAP.

        Haters gonna hate

        Like or Dislike: Thumb up 0 Thumb down 8
        • Menyusahkan Rakyat on Apr 10, 2015 at 8:15 pm

          Proton selling only 800 cars in Australia. 5-star Ancap doesn’t guarantee big sales. Even Great Wall China cars selling more than Proton there. Pathetic loser!

          Like or Dislike: Thumb up 8 Thumb down 0
  • no BN on Apr 10, 2015 at 3:37 pm

    Jokowi going abroad seeking investors for homeland,whereas Najip going abroad playing golf, buying jet( Rm465 million) and bring wife for shopping. Very good

    Like or Dislike: Thumb up 27 Thumb down 1
  • Same L0rrr on Apr 10, 2015 at 3:38 pm

    Well done Toyota. Proven our vision to provide best car for our customers. Buy Toyota better, good RV.

    Like or Dislike: Thumb up 3 Thumb down 9
    • 2014 Camry 2.5 - RM98k on Apr 10, 2015 at 3:42 pm

      Are you sure? I just bought a July registered 2014 Camry 2.5V for RM100k. Very low mileage and accident free. I hear now, can even get RM98k.

      Same Lorrrr, pls stop cheating people here in PT

      Like or Dislike: Thumb up 10 Thumb down 3
      • ProtonGSC on Apr 10, 2015 at 4:17 pm

        Just ignore his stupid sarcasm messages so he will stop…

        Stop reply him…

        Like or Dislike: Thumb up 4 Thumb down 0
      • Proton Supporter on Apr 10, 2015 at 4:45 pm

        Why you buy Camry? Why not Proton?

        Like or Dislike: Thumb up 2 Thumb down 1
  • Thanks to BN on Apr 10, 2015 at 3:41 pm

    This is just the beginning… Soon we will export our people to Indonesian work as a labour and maid

    Like or Dislike: Thumb up 9 Thumb down 0
    • 1MDB (Malas Dolop Bodoh) on Apr 10, 2015 at 3:53 pm

      The rich cronies have all bought property overseas and also have fat bank accounts overseas.

      Only the poor kampung people will suffer

      Like or Dislike: Thumb up 9 Thumb down 1
  • Looks like the tide is turning against us. Soon Malaysians will work in Indon as maids, cleaners, shopkeepers, construction workers.

    Like or Dislike: Thumb up 9 Thumb down 1
  • C.P.MOHAN on Apr 10, 2015 at 4:02 pm

    These marques will invest in Thailand and Indonesia no matter what because of their Market, Cheap Labor, Growing middle-class and Logistics. Malaysia is only making it difficult for itself by having a bias tax regime don’t believe me see WEALTHY Singapore.

    Like or Dislike: Thumb up 5 Thumb down 0
    • Menyusahkan Rakyat on Apr 10, 2015 at 8:07 pm

      There’s only one guy to blame for chasing away the car investors.

      He is a 30 year old, still wearing pampers, and prefer to sit on wheelchair rather than walking by himself.

      Who is that loser?

      (Bonus clue: He came from kampung Tanjung Malik and works at Shah Alan)

      Like or Dislike: Thumb up 4 Thumb down 0
  • Aiyoo… why Toyota and Suzuki so stupid wan… Proton is comparable to BMW and Volvo… so, Toyota and Suzuki should come to Malaysia, thus they can learn from Proton mah…

    Like or Dislike: Thumb up 1 Thumb down 1
  • taugeh on Apr 10, 2015 at 6:57 pm

    All of you talked as if malaysia is the only place for investment. All the indons, thais don’t deserve it. They worked hard, and get a much lower salaries than their Malaysian counterpart. If I am an investor I will try to find a place where the cost is low.
    Malaysia is not cost effective anymore. Only older generation are willing to work hard. Younger people like to sit infront of computers, dreaming owning a BMW, and upon realising he cannot afford it, start blaming proton for everything.
    Pathetic really.

    Like or Dislike: Thumb up 5 Thumb down 20
  • alldisc on Apr 11, 2015 at 7:06 pm

    Now all of us can see…. In a market similar to ours 600k, Toyota is getting half of it. No wonder they can design 3 cars purposely for Indonesia alone (unser/innova, avanza and rush).

    Let other market decide either take it or leave it. In the end we had no choice but to follow.

    Like or Dislike: Thumb up 0 Thumb down 1
 

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