Toyota Motor formally announced plans to build a second plant in Indonesia, next to its existing plant in Karawang – some 70km (40 miles) east of Jakarta.
The announcement was made by group CEO Akio Toyoda at a press conference during his visit to Indonesia to market the 40th anniversary of the company’s presence in the country.
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Toyoda said his company plans to invest around IDR2.9 trillion (US$336m) in the new plant which is scheduled to be completed by early 2013. It will have an initial annual production capacity of 70,000 vehicles per year and is expected to generate some 7,000 jobs directly and a further 8,000 among suppliers and throughout the distribution network.
Toyota said key to success will be making vehicles suited to Indonesian road conditions and local customer requirements. While the company plans to export the vehicles across the south-east Asian region, priority will be in supplying the domestic market.
Johnny Darrmawan, marketing director at distributor PT Toyota Astra Motor, said the government has yet to finalise tax incentives for the production of small cars and that other priorities also exist – including infrastructure development, especially in and around the main ports.
