Jakarta. Japanese automotive giant Toyota Motor Corporation will increase investment in Indonesia over the next two years, seeking to expand its production capacity, a minister said on Monday (13/03).
Toyota would raise its total investment to Rp 25 trillion ($1.87 billion) by 2019, compared to the previous plan of Rp 20 trillion, Industry Minister Airlangga Hartanto said after a meeting between Toyota Motor Corporation president Akio Toyoda President Joko "Jokowi" Widodo at the State Palace in Central Jakarta.
Toyota has spent Rp 18 trillion over the past few years, Hartanto said. This includes the expansion of the company's engine plant and its assembly and production lines in Karawang, West Java.
The company's local manufacturing unit, Toyota Motor Manufacturing Indonesia, currently has the capacity to build 250,000 cars per year. The manufacturer just completed a Rp 2.3 trillion aluminum engine factory in Karawang with an annual capacity of 216,000 units.
Toyota, with its ubiquitous minivans and city cars, dominates more than a half of the country's automobile market.
Hartanto said Toyoda promised Jokowi that the company is committed to contribute to the domestic automotive industry by increasing investment, exports, employment and improving the skills of local workers.
Toyota's announcement came after rival Honda said last month that it will invest Rp 4.8 trillion in Indonesia over the next five years to expand local production capacity.