Toyota-Denso Inaugurates $88m Auto Parts Cikarang Plant


OCTOBER 15, 2016

Jakarta. Toyota-Denso Automotive Compressor Indonesia, a joint venture of the Japanese company and local auto parts makers Astra Otoparts, has inaugurated a $88 million new car components factory in West Java, cementing the company's ambition to tap into the growing car market.

The plant, which is located in the industrial area of Cikarang in Bekasi, produces air conditioning compressors and clutches for cars and employs 1,928 workers, Ryuya Ogiso, the president director of Toyota-Denso Automotive Compressor Indonesia, said in a statement on Friday (14/10).

"We use this momentum to invest in Indonesia, because of a conducive business climate and competition in domestic car industry is increasing," Ogis0 said.

The government has been cutting red tape over the past few months to improve the investment climate. Meanwhile, Indonesia's car sales has expanded in the past six months, bolstering confidence that sales would reach 1.05 million cars this year, up from 1 million last year.

The plant is capable of producing between 3 million and 4 million units of the components per year, supplying several automotive manufacturers both domestic and abroad, including Toyota, Daihatsu, Honda, Mitsubishi, Suzuki, Perodua, Ford and General Motors.

Toyota-Denso Automotive Compressor Indonesia is a joint venture of Toyota Industries with shares of 50.1 percent, Astra Otoparts (25.7 percent), Denso International Asia (20 percent), and Toyota Tsusho Indonesia (4.2 percent).

Syarif Hidayat, secretary general at the Industry Ministry, said the auto parts industry continues to grow in proportion to the increase in production and sales of vehicles in Indonesia. Toyota-Denso would be the latest among some 1,500 others auto part makers that supply Indonesia's car manufacturers.

Also, the factory would serve as platform for technology transfer and human resource development for local workers, he said.