Toyota Indonesia to build new engine plant in W. Karawang

Toyota Motor Manufacturing Indonesia (TMMI) is planning to build a plant focusing on engines in West Java this year, as it strives to develop a production base in Indonesia.

“We have acquired 150 hectares of land in West Karawang to build an engine plant, and we hope to begin operations by 2016,” said I Made Dana Tangkas, a director at TMMI.

The project was part of Toyota's $1.1 billion investment plan in Indonesia for 2012 to 2017.

The factory will add to Toyota's 3 existing plants, all of which are in West Java: 2 in Karawang and 1 in Sunter.

Made said that the company has been producing engines in Indonesia, with 56,367 assembled units exported in 2013.

“Model lines that are produced in Indonesia will expand. Toyota is aiming to make Indonesia the production base for small-sedan models,” Made said.

Aside from fully-assembled cars TMMI exports also include automotive parts and knocked-down vehicles, Made said.