iben's Blog

JAKARTA, KOMPAS.com -

Toyota Motor Corp (TMC) has raised its investment by Rp1.7 trillion to build two new factories in Karawang, West Java, with an annual production capacity of 40 thousand units.

"Toyota production is projected to reach 100 thousand units this year and to increase to 140 thousand units in 2013. The maximum production capacity of our factories is 180 thousand units per year," PT Toyota Motor Manufacturing Indonesia (TMMIN) President Director Masahiro Nonami said following a meeting with Industry Minister MS Hidayat here on Wednesday.

The two new plants would be built in the second semester of 2011 and would start operating early in 2013, Masahiro said. TMMIN Vice President Director Johnny Darmawan meanwhile said the new plants would produce new models of Toyota cars. However, he declined to elaborate.

"The concept (of new models) will at least support the government's wish," he said adding the government had asked the company to produce environmentally friendly and less fuel-consuming cars or green cars.

He said the new plants would employ 400-500 workers, not to mention the number of workers to be employed in component industries. In total, the project would create jobs for 1,500-2,000 people.

"Indonesia is the important production base of Toyota cars for the Asia-Pacific market," he said.

Industry Minister MS Hidayat warmly welcomed Toyota's plan to build the new plants in Indonesia and hoped the company would increase the use of local components to up to 90 percent.