Toyota pledges to contonue big investment

YOKOHAMA. Toyota pledged to continue with big investment plan in Indonesia especially in the manufacturing industry to reach a total value of Rp20 trillion in 2020.

Vice President of PT Toyota Motors Manufacturing Indonesia (TMMIN) Warih Andang Tjahjono said Toyota, as pledged by President Director of Toyota Motor Corp (TMC) Akio Toyota, already invested Rp10 trillion in Indonesia.

"Big projects are already implemented . The third factory has been completed," Warih said in Tokyo on Sunday on the sidelines of a meeting on safety and environmental campaign between TMC and various mass media in the Asia Pacific region.

He said since 2013, the car production capacity of Toyota in Indonesia has continued to increase from 110,000 units to 250,000 units at present with investment totaling Rp10 trillion.

He said the largest part or around Rp5 trillion of the investment was for the expansion of the production capacity of Toyota Kijang and Fortuner cars, followed by investment for the production of Sienta reaching around Rp2.5 trillion and production of NR engine around Rp2.3 trillion.

"Therefore, there are still investment plans," Warih said.

The following investment, he said, would be more for modification of products, and improvement of efficiency to increase competitiveness and opening supporting industries like production of Denso He said in addition to producing TMC through TMMIN has expanded exports of cars that the investment in Indonesia is optimum.

"Exports are important to reach an economic scale for cars of the various models produced by TMMIN," he said.

He predicted that exports of Toyota cars from Indonesia would reach 170,000 units this year, saying the car models include Innova, Fortuner, Vios, Yaris, Avanza, Rush and Sienta.

"There has been a decline in market demand for several models especially in the Middle East, but the decline was offset by an increase recorded in a number of ASEAN countries such as the Philippines," he said.

Warih cited monthly demand for Toyota cars in Middle East fell from around 3,000-3,500 units to around 2,000 units.

However, exports to the Philippines rose from 1,000-1,500 units to 2,000-2,500 units per month.

Toyota is the largest car maker in the country.