Japanese carmakers committed to Indonesia<\/p>\n
Novan Iman Santosa, The Jakarta Post, Tokyo\/Jakarta<\/p>\n
Japanese carmakers still see potential and opportunity in
\nIndonesia's auto market, particularly when combined with the
\nregional market of Association of South East Asian Nations
\n(ASEAN), with its population of 500 million.<\/p>\n
However, they have warned that the Indonesian government needs
\nto pay special attention to this sector, so that its potential
\ncan be turned into real profit, or neighboring countries will
\nreap the windfall.<\/p>\n
Indonesia is considered to lack basic infrastructure and
\nsupporting industries, especially those of auto parts production.<\/p>\n
Most major car manufacturers currently choose Thailand as
\ntheir production base, which could offer better infrastructure as
\nwell as a more stable situation.<\/p>\n
Japanese car makers, however, still turn to Indonesia,
\nparticularly due to their belief that concentrating business in
\nonly one country is not a wise strategy.<\/p>\n
Japan's largest carmaker, Toyota Motor Company (TMC), said it
\nwas committed to continuing business here, while calling for
\nmajor improvements.<\/p>\n
\"As a business, we want to see a stable economic policy as we
\nfirmly believe that Indonesia has the potential for growth,\" said
\nToyota's spokesman Tetsuo Kitagawa on the sidelines of the Tokyo
\nMotor Show last October.<\/p>\n
Toyota has set upon Indonesia and Thailand as the production
\ncenter for its planned global vehicle-and-parts supply network,
\ncalled the Innovative Multipurpose Vehicle (IMV) project, for the
\nASEAN region.<\/p>\n
\"Indonesia and Thailand have recovered rapidly from the 1997
\neconomic turmoil as shown by sales. They have surpassed the
\nsales-record before the crisis,\" said Kitagawa, who is also IMV's
\nproject manager<\/p>\n
\"ASEAN market has become part of Toyota's global market
\nnetwork. It is no longer a local market but has become part of
\nthe international market.\"<\/p>\n
The investment is US$180 million in Indonesia and 15 billion
\nbaht (US$384 million) in Thailand, to produce multipurpose
\nvehicles (MPV) and pick-up (trucks).<\/p>\n
In Indonesia, the annual MPV production is set at 70,000
\nunits, of which 10,000 will be exported within and beyond the
\nregion. Gasoline engine production is set at 180,000 units
\nannually, 130,000 of which will be designated for export.<\/p>\n
Meanwhile, annual pick-up and MPV production in Thailand is
\nset at 200,000 units, half of which will be exported to more than
\n80 countries and territories within and beyond ASEAN.<\/p>\n
Toyota will also set diesel engine production in Thailand at
\n240,000 units a year, and expects to annually export 130,000
\nunits.<\/p>\n
Kitagawa said that Toyota ultimately wanted 100 percent local
\ncontent for the IMV project.<\/p>\n
In another effort to strengthen its presence in Indonesia,
\nToyota announced on Dec. 12 its cooperation with Daihatsu by
\nlaunching Toyota Avanza and Daihatsu Xenia in a project called
\nthe Under IMV or U-IMV.<\/p>\n
Meanwhile, Honda Motor Co. chief of operations for Asia
\nOceania Operations, Satoshi Toshida, also saw Indonesia as a huge
\npotential market.<\/p>\n
\"We will improve not only the quantity of our cars but also
\nthe quality.<\/p>\n
\"Improving the quality is important to satisfy the customers,
\nwhich in turn will make them loyal to the brand,\" he said.<\/p>\n
Last September Honda Motor Co. opened two factories in
\nKarawang, West Java.<\/p>\n
Located in Bukit Indah Industrial Park, some 70 kilometers
\nsoutheast of Jakarta, the total investment is $134 million, with
\n3,000 workers employed at the two factories.<\/p>\n
One of the plants, PT Honda Precision Parts Manufacturing, is
\nHonda's first sophisticated automatic transmission and engine
\nvalve plant established outside of Japan and the United States.<\/p>\n
It is expected to achieve a production of 250,000 automatic
\ntransmissions and 550,000 engine valve sets this year.<\/p>\n
The transmission and valve products will be mostly supplied to
\nHonda's automobile plants within ASEAN and Europe.<\/p>\n
The other plant, PT Honda Prospect Motor, will assemble three
\nof Honda's models --the Civic, the CR-V and the Stream.<\/p>\n
Indonesia is the only country outside Japan that produces the
\nStream minivan. The plant is expected to produce 40,000 Streams
\nthis year, with a larger portion to be exported.<\/p>\n
However, the automakers called for stability on investment
\nregulations, market liberalization and the provision of local
\nparts makers.<\/p>\n
\"We cannot cope with our investment if the regulations keep
\nchanging. Automaking is a long term business.<\/p>\n
\"It takes about 10 years to develop a new product from the
\ninitial design process. That's why we need stability of some
\nsort,\" Toshida said, adding that stability would also help in
\nestablishing local business partners and content, both of which
\nneeded much time and effort to build.<\/p>\n
Vice president of the Japan Automobile Manufacturers
\nAssociation (JAMA), Takao Suzuki, also said that it was important
\nfor Indonesia to have a stable automotive development policy.<\/p>\n
\"We have already invested a lot in Indonesia but there is
\nstill room for more, but we would first like to see improvements
\nin taxation and certification systems, as well as technical
\nregulations.<\/p>\n
\"All these improvements are needed in anticipation of the
\nASEAN Free Trade Area (AFTA) which will open more opportunities
\nfor marketing the cars in the region.\"<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/japanese-carmakers-committed-to-indonesia-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}