Toyota promises to help Astra's export efforts

JAKARTA (JP): The honorary chairman of Toyota Motor Corporation, Eiji Toyoda, has expressed his commitment in helping PT Astra International increase the export of its Toyota Kijang vans.

Astra International's Chairman A. R. Ramly said Toyoda made the commitment yesterday in response to President Soeharto's suggestion that the Japanese automobile giant help Indonesia promote its car exports.

Ramly and Toyoda, accompanied by Astra International's president T.P. Rachmat and Toyota Astra Motor's president Rudijanto Hardjanto, made a courtesy call on Soeharto yesterday.

During the meeting, the Toyota executives donated 50 Toyota Kijang vans to President Soeharto for use by social foundations. The donation was made in light of the 50th anniversary of Indonesia's National Independence on Aug.17.

Ramly told newspeople following the meeting that Astra had been exporting 100 Toyota Kijang vans a month to Brunei and car components, such as engines, to Malaysia and Japan.

"But we are determined to increase exports," Ramly added.

To support the export development, Astra International will soon embark on the expansion of its car industry with an additional investment of US$600 million, Ramly said.

According to Ramly, Astra will increase the production of Toyota Kijang vans from 50,000 units last year to 75,000 units this year to meet the rising demand.

"We will also increase the local content of Toyota Kijang from 51 percent at present in a bid to lower its production costs in view of the steady appreciation of the yen against other major currencies," the Astra chief said.

Replying to reporter's questions, Ramly said Astra is ready to face the increasingly tough market competition following the entry of South Korean cars such as Hyundai.

"We see the new entrants as a challenge to continue improving our efficiency both in the domestic and export markets," he said.

Astra International, which is traded on the local stock exchanges, is the country's largest automobile group which holds about 55 percent of the national car market.

"Toyota Kijang dominates 30 percent of the market of vans," he added.

Astra and its subsidiaries are also the sole agents and assemblers of several other car makes, including Daihatsu, BMW, Isuzu, Nissan Diesel and Peugeot. (04)