Toyota's Indonesian vehicle-producing subsidiary PT Toyota Motor Manufacturing Indonesia (TMMIN) is to purchase 150 hectares of land near its two plants in Karawang to build a new engine plant to strengthen local procurement and to respond to future demand increases expected with the growth of the Indonesian market.

Its Karawang plant will increase annual production capacity from 110,000 vehicles to 130,000 and employ 190 new workers by September 2013 to reinforce supply of IMV series vehicles.

Toyota Auto Body is to begin vehicle production in December 2012 at PT Sugity Creatives PT, its joint-venture vehicle and parts manufacturing company in Bekasi Regency formed with TMMIN and Toyota Tsusho.

Last month, Daihatsu began operation at its Karawang Plant - its second local production base following its Sunter Plant (established in 1992) in northern Jakarta. Construction of Daihatsu's second test track and design centre outside Japan will also begin at its Karawang Plant within the year.