Despite the approval and the implementation of the CARS program, the Philippines misses out on another massive investment by Toyota Motor Corporation (TMC) in the region.
Indonesia Industry Minister Saleh Husin has just announced that TMC has committed to invest Rp 5.4 trillion or US$ 400 million (Php 19 billion) for an export-based production plant in order to cope with demand in the Middle East and other parts of Southeast Asia.
This is part of an initial investment that started in 2015 and will run through 2019 totaling Rp 20 trillion or around Php 70 billion.
"Toyota is serious about doing business in Indonesia. This year, it will invest Rp5.4 trillion, following the Rp5 trillion worth of investment that the company made in 2015," said Minister Husin.
The minister also reiterated calls for TMC and other automakers to continue increasing their investment, particularly in the manufacturing of materials and spare parts. This is after businessmen from Fukuoka a visited Indonesia to determine the viability investing in local auto parts makers.
Toyota Motor Philippines currently sources the Avanza, Wigo from Indonesia via the Astra Daihatsu subsidiary, while the 2016 Fortuner will also be sourced from PT Toyota Motor Manufacturing Indonesia (TMMIN). TMMIN recently annouced an increase of content localization for the new Fortuner from 60% to 75%.
TMC is currently constructing another plant in Karawang, West Java to concentrate on engine production. This makes it the third Toyota plant in Indonesia, two in Karawang and another in Sunter.
Reports indicate that TMC is planning to produce more units of the Yaris, which is currently being produced in Thailand, in Indonesia. There is no news yet if the entire production of the Yaris will be moved to Indonesia.
The Yaris adds to the existing production of the Kijang (Innova), Fortuner, Vios and Limo (a base version of the Vios) in Indonesia.