Sunday, 21 July 2019 | 21:45 WIB

Local Automotive Assembly Strengthens Indonesia as Production and Export Base

Local Automotive Assembly Strengthens Indonesia as Production and Export Base (special)

JAKARTA, NETRALNEWS.COM2019 has become the fifth year for PT Toyota Motor Manufacturing Indonesia (TMMIN) in manufacturing sedan (Vios) and hatchback (Yaris) cars locally. Before being produced domestically, these two vehicle models were imported from Thailand.

Local production of Vios and Yaris is a realization of Toyota's commitment to contribute as much as possible to the development of the national automotive industry through import substitution and export expansion. This also strengthens Indonesia's position as one of the production and export bases of automotive products in the Asia Pacific region.

For the past five years (until April 2019), TMMIN has produced Vios and Yaris in more than 257,200 units for both the domestic and export markets.

A total of 94,750 units or 37 percent of Vios and Yaris have been produced to meet domestic consumer demand. While as many as 162,530 units or 63 percent of Vios and Yaris have been shipped to 13 countries in the ASEAN region and the Middle East.

"Local production of sedan models is none other than an effort to reduce dependence on imports of complete vehicles (Complete Build Up / CBU) while actively playing a role in the export market so that it can contribute to the balance of trade balance, especially in the automotive sector. "It also proves that the national automotive industry has high competitiveness and is believed to be a producer of one of the most sought after models in the global market," said Bob Azam, TMMIN's Director of Administration, Corporation and External Relations.

To start the Vios/Yaris local production project in 2014, Toyota invested IDR 2.5 trillion. In addition to investments, the localizing and exporting of Vios/Yaris created a domino effect for the supply chain of the Indonesian automotive industry.

A total of 63 first-tier suppliers were involved in the production and export of 2 models of this vehicle. The level of domestic content (TKDN) of Vios / Yaris has now reached 75 percent.