Japanese Automaker Bulk Up Investment In Indonesia
Nov 20, 2019

A number of Japanese automakers have plans to extend their investments in Indonesia, which should help the government implement its roadmap to build a globally competitive automotive industry.

“We have received a report about Toyota Group’s expansion plan worth of $2 billion. This will include the development of Toyota, Daihatsu and Hino vehicles,” Industry Minister Agus Gumiwang Kartasasmita said in a statement on November 18, as quoted by kompas.com, adding that the investment would be used to expand the company’s business in Indonesia during the period from 2019 to 2023.

Meanwhile, Honda has conveyed its interest in investing $362 million in Indonesia within the same period, Agus said.

“The investment by Honda will be allocated to localisation, new car models and industry deepening, among other things,” he added, noting that Honda had placed its research and development center in Indonesia.

Indonesia’s automotive market has shrunk so far this year as domestic car sales declined by about 11.7 per cent year-on-year as of October, according to data from the Association of Indonesian Automotive Manufacturers compiled by diversified conglomerate Astra International. In the month of October, domestic car sales dropped to 96,030, down nearly 9.5 per cent from the 106,079 units sold in the same month last year.