Sun, Nov 11, 2012 - Page 13 News List

Toyota set to boost vehicle production at Indonesia plants

Bloomberg

Toyota Motor Corp, Asia’s biggest carmaker, will more than double vehicle production capacity and build a new engine factory in Indonesia to meet rising demand in the Southeast Asian country.

The automaker will boost annual capacity at its first Karawang plant to 130,000 units by September next year from 110,000 units, the Toyota City, Japan-based company said in a statement yesterday.

The company will have capacity to make 250,000 cars by 2014 after its second Karawang factory opens early next year.

Toyota and related companies plan to invest 13 trillion rupiah (US$1.35 billion) in Indonesia during the next five years, boosting employment to about 41,000 from more than 32,000 at present, according to the statement.

Expansion in Indonesia comes as the maker of Camry sedans seeks to raise its local procurement rate to offset the impact of the strong yen. Toyota now sources 75 percent of its components locally, according to the statement.

“Toyota has been working with the government, customers and community in Indonesia for more than 40 years and this is why we think the country is very important,” Toyota president Akio Toyoda said at a press conference in Jakarta yesterday.

The Southeast Asia’s nation is also important because of its large population, stable political situation and economy, he said.

Toyoda also met with Indonesian President Susilo Bambang Yudhoyono earlier yesterday. In the meeting, Yudhoyono asked the Japanese carmaker’s support to develop low-cost and green automobiles, Firmansyah, the president’s special staff for the economy told reporters.

Separately, the company will purchase 150 hectares of land to build a new engine factory, Toyota said in the statement. The automaker will hire 190 workers at the Karawang plant, it said.

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