Toyota to invest $1.3B in Indonesia over 5 years

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TOKYO – Japan’s Toyota group said Saturday it would invest about 13 trillion rupiah ($1.3 billion) over the next five years in expanding its vehicle production in Indonesia.

Toyota Motor and its five affiliated firms are making the move “considering the remarkable growth of the (Indonesian) market in recent years”, a statement from the group said.

The investment will create 9,000 new jobs, raising the group’s total workforce in Indonesia to around 41,000, according to Japanese media.

Toyota Motor’s Indonesian unit, Toyota Motor Manufacturing Indonesia (TMMIN), will buy 150 hectares (370 acres) of land near its two plants in Karawang outside Jakarta to build a new engine plant, the statement said.

TMMIN will increase annual production at one of the Karawang plants from 110,000 vehicles to 130,000 by September 2013 to reinforce supply of pickup trucks, minivans and sports utility vehicles.

The five Toyota group firms are Daihatsu Motor, Toyota Auto Body, Aisin Seiki, Denso and Toyota Tsusho.

In the expansion project, Toyota Auto Body will begin vehicle production in December, the statement said.

Daihatsu Motor will also begin construction of its second test track and design center outside Japan — at one of its Karawang plants — by the end of this year.

The six group firms have already invested about 27 trillion rupiah over four decades with Toyota Motor accounting for 9.5 trillion rupiah, the statement said.

Strong investment and domestic spending have seen Indonesia remain one of the best performers in Asia. Southeast Asia’s biggest economy on Monday announced growth of 6.2 percent in the third quarter from a year earlier.

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  • dabu

    A huge real gain to Indonisia, a huge opportunity loss to RP. This is no fun for RP.

  • http://www.facebook.com/profile.php?id=1026258282 Ed Ridwan

    Indonesia ,the league of its own

  • mark1205

    Why would motor companies invest here? We don’t want to even buy brand new utility cars we just want to rehabilitate old ones from japan or other countries who consider what we use junk. Now who wants to breath fresh air in our cities? I bet that is impossible.

    • Yxon

      very true…the importation of second hand cars has a very big effect even on our local distributors…add to it our attitude of rehabilitating old ones (which is an effect of our economic capacity)

  • delpillar

    Actually hindi lang ito ang balita in the past few weeks sa mga business news worldwide..
    More than 20 Japanese companies will invest more than 1 billion US Dollars in the next 5 years (puera pa sa 1.3 Billion US Dollars from Toyota).

    Daihatsu, a smaller car manufacturing company will invest 350 million US Dollars within 5 years in Indonesia.

    Last month ay nag-announced din yung Nissan that they will make new additional factories sa Thailand na ang output will be an additional 400,000 cars per year. The worth of that investment is about 400 Million US Dollars. So wala talaga na pupunta sa Pilipinas. Ang nababasa ko ay Thailand ang first and foremost sa mga Japanese companies, next is Singapore, Malaysia Indonesai, Thailand and Vietnam. Japanese waved the 3 Billion na utang ng Myanmar because they will invest a lot in the next 5 to 10 years sa Myanmar.

    In the past 10 years, other than Europe, ang daming Indonesian students na nag-aaral sa mga foreign universities…. mostly are funded by the government of Indonesia, multinational companies at mga private companies ng Indoneisia and nGOs. Parang yung Prime Minister Mohamad Educational Scholarship noonng 1980’s to 90’s sending hundreds to thousand students to Japan
    to study engineering and technical educations.

    Ang pinaka-ayaw ng investors sa Pilipinas ay over-night, ang rules and policies ay pwedeng i-interpret or i-twist ng mga corrupt na officials ng government lalo na ang mga mga nasa congresso at national posittions para mangotong ng pera at Condo units.

    Kung ano ang ginawa ng Malaysia sa infrastructure investments noong 1980’s to 90’s ay sya ring ginagawa ng Indonesia in the past 10 years.

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