Toyota to increase production capacity in Indonesia image

Toyota Motor Corporation (TMC) plans to increase the annual production capacity at its currently-under-construction Karawang No. 2 Plant in Indonesia to 120, 000 vehicles from an originally planned 70,000 vehicles.

The Japanese automaker will invest an additional Rp 1.3 trillion (US$143 million) in Indonesia to boost capacity amid growing domestic demand, an official says.

“With the investment, we can make another 50,000 units starting from mid-2013, when the capacity upgrade is completed,” he told The Jakarta Post over the telephone, adding the upgraded plant would produce new models.

Toyota currently operates three facilities in Indonesia: Sunter 1 and Sunter 2 in North Jakarta and the Karawang factory in West Java. Toyota Astra Motor (TAM), which handles distribution and after-sale service for TMMIN products, operates 210 outlets across the country.

Domestic car sales in Indonesia stood at a record 894,180 cars in 2011, up 16.9 percent from the previous year, supported by the lowest ever interest rate and a growing middle class, Reuters reports.