Toyota Will Make Indonesia As ASEAN Export Base

Indonesia Basis Ekspor Toyota di ASEANToyota will increase production capacity of a second plant in Karawang which will be in production late next year. The new plant's production will be exported and partly for the domestic market.

"We will make a second factory in Karachi that the export production base, and we plan for new products," said Executive Vice President Director of Toyota Motor Corp. (TMC) Yukitoshi Funo, after meeting with Minister of Industry MS Hidayat and the minister who is also Head of BKPM Gita Wirjawan in Jakarta .

TMC will make Indonesia its production base for auto exports to Asia, Africa, Australia, New Zealand, and the Middle East, with the percentage of a lot more domestic than export.

"In the early stages of production, the share for the domestic market will be bigger. However, in line with market growth in the targeted countries the share of exports will rise," he explained.

Last year, more Funo, Indonesia is Toyota's fourth-largest auto market after the United States, Japan, and China, with sales of 310 thousand units. To achieve that, an additional investment to ensure the Toyota factory Karawang 2, so the total investment reached 41.3 billion yen, equivalent to Rp 4.8 trillion.

"At first, the initial investment for second plant Karawang 26.3 billion yen with a production capacity of 70,000 units are realized by 2013. Now, we add 15 billion yen, so the capacity to 120,000 units and is scheduled to start production by 2014," said Funo.

With additional investment, the total production capacity of Toyota's factory in Karawang is 230,000 units per year, consisting of as many as 110,000 units of Karawang1 plant, and as many as 120,000 units of the plant Karawang2. "This new factory Toyota prepare for new models and plans are also exported," said Funo.

Minister of Industry MS Hidayat said the establishment of Karawang 2 Toyota plant opened 29 000 new jobs in Indonesia until the relevant supplier. Toyota also asked for new incentives from the government in Indonesia related to new investments.