Food
The Toyota Motor Corporation (TMC) group is ready to invest Rp5.4 trillion in Indonesia this year, according to Industry Minister Saleh Husin.
Husin received the pledge during a meeting with TMC Executive Vice President Seiichi Sudo in Nagoya, Japan, on Thursday.
“Toyota is serious about doing business in Indonesia. This year, it will invest Rp5.4 trillion, following the Rp5 trillion worth of investment that the company made in 2015,” he noted in a press statement received here, Friday.
This reflects that global investors still trust Indonesias investment climate and see prospects in the nations automotive industry, he noted.
The minister has lauded Toyota for its trust and continued investment in Indonesia, after selecting the nation as one of its investment destinations and a Toyota car production base so far.
He called on Toyota and its partners in Japan to increase investment in the automotive sector, particularly for the manufacturing of materials and spare parts.
The minister also invited the company to conduct research and development activities in Indonesia to strengthen the structure of Japans existing automotive industry in Indonesia.
Husin also urged Toyota to increase the production of cars in Indonesia, which has a population of over 250 million, including 74 million belonging to the middle class.
The Toyota brand dominates around 31-32 percent of Indonesias domestic market.
Within five years, from 2015 to 2019, Toyota has planned to invest a total of Rp20 trillion.
Until 2014, Toyota had invested Rp40 trillion in Indonesia.
Currently, the Japanese company is constructing an engine plant in Karawang, West Java.
