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Toyota Extends Partnership in Indonesia

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Toyota Motor Corporation’s (TMC’s) vehicle production subsidiary in Indonesia, PT. Toyota Motor Manufacturing Indonesia (TMMIN), announced during a groundbreaking ceremony today for its new engine plant in Karawang, plans to open a new manufacturing learning center next to the engine plant. The learning center is expected to open before the engine plant goes online in early 2016. In addition, it was announced that planned employment at the new engine plant will be increased from 400 to 600.

The new manufacturing learning center will focus on the development of manufacturing skills and knowledge of Toyota Indonesia team members, local suppliers and other Toyota stakeholders in Indonesia, thereby helping to ensure the global quality of Toyota products while contributing to the Indonesian people. The new facility will be TMMIN’s third learning center, along with centers in Karawang and Sunter.

The new engine plant is located near TMMIN’s Karawang plants, with the additional engine production marking TMMIN’s first production of engines for vehicles other than the “Hilux” pickup truck, “Innova” minivan and “Fortuner” SUV. With investment of 23 billion yen (around RM740 million), the new engine plant will help strengthen Indonesia’s position as a key engine production and supply base for Toyota. The plant will have an annual production capacity of 216,000 units and is scheduled to manufacture passenger vehicle engines, with approximately 50 percent marked for export.

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At the groundbreaking ceremony, TMMIN President Director Masahiro Nonami said: “Toyota’s founding principle is to contribute to society through the manufacture of automobiles. We endeavor to continue developing products that delight drivers and contribute to the expansion of the Indonesian automotive industry. Today’s announcements demonstrate Toyota’s commitment to Indonesia’s economic growth. We look forward to continued collaboration with government leaders and our business partners.”

Other attendees at the ceremony included Indonesia Minister of Industry M.S. Hidayat, Indonesia Investment Coordinating Board Chairman Mahendra Siregar and TMC Managing Officer Hiroyuki Fukui.

TMMIN currently produces engines for Hilux, Innova, and Fortuner vehicles at its plant in Sunter for domestic use and export to Asia, Latin America and Africa. In 2013, 40 percent of engines made at Sunter were exported.