Toyota investing additional Rp1.3 trillion for new plant

Japan’s biggest automaker, Toyota Motor Corp., is investing an additional Rp1.3 trillion (US$143 million) to boost the capacity of its joint venture with Indonesia’s Astra International, from 180,000 units to 230,000 units by mid-2013. “With the investment, we can make another 50,000 units starting from mid-2013, when the capacity upgrade is completed,” said Johny Darmawan, vice president of PT Toyota Motor Manufacturing Indonesia (TMMIN). The new plant is now being constructed and will begin operating by the end of this year. Darmawan added, “At present, Toyota cannot fulfill the whole demand for cars in Indonesia. We still face shortages of supply, although Daihatsu has helped us.” Indonesia is a lucrative market for car dealers because of its growing middle class. Its economy has grown by more than 6 % in the past two years. Major automakers in the country are predicting that there will be a healthy increase in demand for low-cost and green cars, and they are waiting for new government policies. (January 18, 2012)