Indonesia to boost car production by 66%

Indonesia’s car production capacity has gone up by 66.67% from 900,000 units a year to around 1.5 million units a year following the realization of commitments from five Japanese automakers.
“Five principals will increase their production volume by a total of 600,000 units a year.,” said Budi Darmadi, the Ministry of Industry’s director general of technology-based prospective industries. Total investment by these five automakers will reach more than US$2 billion, he said.
Honda Motor Co. Ltd. will invest US$329 million to increase its production capacity by 120,000 units a year. Daihatsu Motor Co. will invest US$233.3 million to add 100,000 units in production capacity. Mitsubishi Motors Co. will invest US$27.8 million to boost capacity by 162,000 units a year.
“The same commitment has also been made by Nissan Motor Co. totaling US$400 million to increase capacity by 80,000 units to 250,000 units a year.
The commitment of the five principals was officially made known to the public last year and will be completed in two or three years’ time, he said.
Additionally, Toyota has already committed US$534.4 million to increase capacity by 120,000 units a year in two stages. Likewise, Suzuki Motor Co. has committed US$762.63 million to boost capacity by 100,000 units a year, he said.
Based on data from the Ministry of Industries, the hike in capacity in 2011-2012 is a new record, he said.