Toyota begins production at the new engine plant in Indonesia image

The world’s biggest automaker by sales has expanded its operations on the emerging market by building a new engine plant in Indonesia.

Two years back, the Japanese automaker has decided to double its production capacity in Indonesia by building another plant in Karawang, West Java, a facility that joins the existing one in Sunter, North Jakarta. Sunter has an output of around 195,000 engines for vehicles such as the Hilux pickup truck, Innova minivan and the Fortuner SUV. Toyota Motor Corporation’s vehicle production subsidiary in Indonesia recently completed construction of the new site, with production already beginning from the end of February.

Built with an investment of approximately 2.3 trillion rupiah (175 million dollars), the Karawang plant has the capacity to make 216,000 engines per year and will take on approximately 400 new employees. Toyota rolls out from there 1.3 and 1.5 litre NR units, some of which will be for export in destinations across Asia, Africa and South America. Toyota sees Indonesia as one of its core hubs for the production and supply of both vehicles and engines. “Through our operations here, we hope to maintain and strengthen our position as part of the local community,” Senior Managing Officer Koei Saga said at the opening ceremony.

Toyota Indonesia Karawang Engine Plant 1

Toyota is pushing hard on production, as its sales keep going up, aiming to hold its position as the world’s biggest automaker at the end of the year. The company has to keep its operations working flawlessly, thus it recently announced an overhaul of its corporate structure. As part of the new shake up strategy, effective in April, there will be seven product-based in-house companies responsible for short- to mid-term product strategy and development.