"Mr. Vice President warmly welcomes this plan. He said the presence of such manufacturing industry is very good and supports very much the structure of Indonesian industry," Yopie Hidayat said after accompanying the vice president during a meeting with Toyota Motor Corp President Director Akio Toyoda here on Tuesday.
Yopie said Boediono fully supported the manufacturing of motor vehicles in Indonesia because it would have a multiplier effect on the domestic economy including small scale industry to supply components to the automotive industry.
As such, many workers would be employed in the sector, he said.
At the meeting with Akio Toyoda, the vice president said the government was fully aware that the question of infrastructure had not yet been overcome.
Yopie quoted the vice president as saying the government would try hard to resolve the problem so that the logistic cost could be kept down.
Toyota plans to increase its investment in Indonesia by US$385 million to raise its annual production capacity to 200 thousand units from 110 thousand units.
In addition, it will also expand its distribution network by investing Rp2.9 trillion in the country.
Yopie said Toyota`s business expansion was expected to create jobs for 15 thousand workers. Of the total, 1,000 will be employed in the production line, 7,000 in distribution network, and 7,000 in supporting industries.
(T.M041/Uu.S012/H-NG/F001)
Editor: Priyambodo RH
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