Toyota opens new engine plant in West Java

Toyota Motor Manufacturing Indonesia held a ground-breaking ceremony to mark its second engine plant in Karawang, West Java.

The company's total investment in the engine plant, located at Karawang Jabar Industrial Estate, is $193.3 million. The plant will produce engines for new passenger cars.

“All the preparations are completed, we will build our second engine plant in Karawang, West Java,” said Masahiro Nonami, Toyota Motor Manufacturing Indonesia president director.

The new factory, on 150 hectares of land, will be the company's second engine factory after Sunter Plant in North Jakarta. The company will sell around half of the production to the domestic market and the remainder overseas.

“We will export more than 50% of the engines produced here on the global market. It puts Toyota Indonesia in a more significant position as we will be a global production base for not only vehicles, but also engines,” Nonami said.

“We will increase our investment in Indonesia if the sales are great and the demand is high,” he said.

“Toyota should produce more than 2 million cars, to date they have produced 1 million. We hope they can reach 3 million in the coming years,” Mahendra said after the ceremony.