REPUBLIKA.CO.ID, JAKARTA - PT Toyota Motor Manufacturing Indonesia finally put the first groundbreaking of development of second engine plant in Indonesia. The plant will produce passenger car engines with investment of 2.3 trillion IDR. The machine components are made from aluminium.
Toyota will focus on national automotive industry through this plant. Therefore, the new plant will increase local components, from 60 to 80 percent.
Vice President of Toyota Motor Manufacturing Indonesia, Warih Andhang Tjahyono explained that the construction would have an impact on development of new local plant component suppliers. Toyota currently has 25 units of local manufacturing suppliers and will be increased to 40 units.
"The positive impact to Indonesia will happen in 2017," Chairman of Toyota Astra Motor, Hiroyuki Fukui added.
Toyota Indonesia increased its export up to 50 percent to Middle East countries, South America and Africa. Company previously commited to invest 13 trillion IDR in Indonesia. Toyota's passenger car engine plant is built on an area of 150 hectares.