Toyota to increase export from Indonesia

JAKARTA. Japanese carmaker Toyota Motor Corporation (TMC) plans to increase its vehicle export as well as adding more destination countries for cars made in Indonesia.

President director of TMC’s marketing arm in Indonesia PT Toyota Astra Motor, Johnny Dharmawan, said currently the total export value was about 15 percent to 20 percent of total production. The destinations are Asian and Middle East countries.

“We will increase the export share to about 30 percent and add Australia, New Zealand and African countries as new destinations,” he told reporters at the Industry Ministry.

Johnny was accompanying TMC executive vice president Yukitoshi Funo who met Industry Minister MS Hidayat on Toyota’s plan to further increase its production capacity in Indonesia.

“Toyota will invest a further ¥15 billion [US$194.62 million] to produce 50,000 cars by 2014,” Funo said.

During the meeting, Hidayat requested that Toyota increase its export from Indonesia. “Toyota will invest a further ¥15 billion [US$194.62 million] to produce 50,000 cars by 2014,” Funo said.

“It is an additional investment to the ¥26.3 billion to set up Toyota's second plant in Karawang to produce 70,000 units made last year.”

Currently, Toyota already has a plant with a capacity of 110,000 cars per year.

Johnny, who is also vice president director of PT Toyota Manufacturing Indonesia, said the new plant would manufacture new models, although he declined to elaborate.

The Indonesian Automotive Industry Association (Gaikindo) said auto sales might only grow from 3 to 5 percent from 894,180 units in 2011 to 930,000 this year due to escalating risks from the global economic slowdown and planned subsidized fuel restrictions in April.

TAM sold 311,136 cars last year, 34.8 percent of the country’s total auto sales.

Indonesia aims to reach a sales figure of 1 million units in 2013 and is ready to overtake Thailand as the biggest automotive market in the region. (Linda Yulisman/ The Jakarta Post)