Second Largest Toyota Production Base in ASEAN

Indonesia became second largest Toyota production base in the ASEAN region, which will play an important role in the global strategy of the Japanese automotive companies.

"Currently Thailand is still Toyota's largest production base in ASEAN. Then there is Indonesia, as the` balance of risk `and` `balance of production bases from Thailand," said Johnny at dinner with some Indonesian journalists, in Tokyo, Saturday night.

He said Indonesia would be strong Toyota's group production base in ASEAN, with Daihatsu plant expansion to become the largest plant outside Japan. In 2012, Daihatsu production capacity  will break above 400 thousand units.

 In addition, TMC is also expanding production capacity of PT Toyota Motor Manufacturing Indonesia (TMMIN) from 110 thousand units to 180 thousand units in 2012.

"Overall Toyota Group take control 53-54 percent of the car market in Indonesia, with a production capacity of approximately 600 thousand units," he said. Until October 2011, Toyota cars control 36 percent in the domestic market and Daihatsu at 15 percent.

Johnny optimistic about high growth of car market in Indonesia, TMC will make Indonesia as one of the priorities in the development of Toyota's business in the future. For this reason, he said, TMC plans to increase purchases of local components in order to strengthen the structure of the automotive industry in Indonesia.

"Without the localization of components, then the product competitiveness is not strong. AFTA (Asean Free Trade Area) only gains tax (import duties), not the cost of production. If you want to compete, must do the localization of components," said Johnny confirms.

Therefore, we need help from the government to create a climate conducive to investment, especially infrastructure needs. He expects.

"If our structure of the automotive industry is strong, with a complete supplier of components, then Indonesia would not be abandoned," he said.

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