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Toyota puts R11bn into Indonesia

2012-11-12 08:10

JAKARTA, Indonesia - Toyota will invest the equivalent of R11-billion in Indonesia over the next five years as part of its expansion plans into south-east Asia's largest economy.

The company will build an engine plant to increase the capacity of one of its manufacturing units in Karawang from 110 000 to 130 000 vehicles a year by September 2013.

A second plant in Karawang was expected to start operating in 2013 and produce 120 000 cars a year.

RECORD YEAR

Toyota chief executive Akio Toyoda said at a news media conference in Jakarta: "We want to send a message to Indonesia that we are committed to expanding our presence from the upstream to the downstream industry."

Toyoda and five chief executives of Toyota group companies met Indonesian president Susilo Bambang Yudhoyono to discuss expansion.

Toyoda said he told Yudhoyono that Indonesia, which enjoys annual economic growth of more than six percent despite the global economic slowdown, would need to improve its infrastructure to attract more investment.

The expansion would allow the company to increase its workforce from 32 000 to 41 000 over the next five years.

Toyota has 40% market share in Indonesia.

Indonesia's vehicle sales are expected to reach a million by the end of 2012. In 2011 the country sold a record 894 180.

The level of car ownership in Indonesia, a country of 240-million people, is still relatively low, with 11-million cars across the archipelago.

DPA