Jakarta (ANTARA News) - Toyota Group plans to step up its investment in Indonesia to up to Rp26 trillion by 2020 and has set its total investment target until 2017 at Rp13 trillion.

"This is proof of our business commitment to Indonesia. We believe the investment will not only affect the auto-industry but also industrial development in general," Toyota Motor Corporation (TMC) President Akio Toyoda said at a press conference here on Saturday.

President Susilo Bambang Yudhoyono has welcomed the investment plan that would involve six companies within the Toyota Group namely TMC, Toyota Auto Body, Toyota Tsusho, Aisin Seiki, Denso and Daihatsu.

"We are honored to receive positive evaluation from President Yudhoyono for Toyota`s activities so far and in the future. Therefore we appreciate the message that has been conveyed," Toyoda stated.

He said the meeting with the President was aimed at improving the business in the automotive industry further for the development of the country`s downstream industries.

Meanwhile, PT Toyota Astra Motor president Johnny Darmawan Danusasmita said the investment would absorb up to 41,000 workers, who will be employed at the six companies involved in the investment plan.

"We have already acquired 150 hectares for expansion during the next five years in Karawang, West Java, which will be the location for a new engine factory that is expected to start operating in 2013," he pointed out.

He said the plant`s production capacity would increase from 110,000 units to 130,000 units by September 2013.

He said Toyota would continue expanding its business into Indonesia in view of the fact that the country was one of the biggest production bases in the global market, he said.

"With its growing market, Indonesia has become more strategic in the automotive world," he said.

Johnny said Toyota`s market share had increased by about 30 percent in the past 10 years after being driven by the positive economic conditions that had placed the company among the big five companies in terms of global sales.

Meanwhile, Toyota president Tsusho Jun Kurabe has expressed support for Indonesia as Toyota`s production base.

"We are resolved to develop our auto-industry to downstream industries as has been discussed with President Yudhoyono," he said.

Kurabe admitted that Indonesia had contributed to Japan`s economy, especially after the 2011 earthquake and had helped meet its oil and coal needs.

Toyota Auto Body president Takuji Amioka also expressed support for the development of the company`s auto-business in Indonesia.

"We support all parties so that the business can grow faster and make our car business a promising initiative," he said.


Editor: Jafar M Sidik
Copyright © ANTARA 2012