Toyota to inject $180m into Astra

Toyota to inject $180m into Astra

Arya Abhiseka, The Jakarta Post, Jakarta

The world's third largest automaker, Toyota Motor Corp. plans
to inject some US$180 million into its Indonesian manufacturing
joint venture company with PT Astra International in an effort to
increase car exports from Indonesia.

Akio Toyoda, managing director of Toyota Motor said on
Thursday that the company planned to increase global production
volume and expected the Indonesian operation to contribute.

"We plan to increase the southeast Asian regional exports of
multipurpose vehicles (MPVs) from Indonesia to about 10,000 units
(next year)," he said at a press conference following an
agreement signing ceremony.

He added that other suppliers who took part in the car
manufacturing with Astra would also invest a total of $200
million.

Last year, Toyota Astra Motor (TAM) manufactured some 84,747
vehicles. No export data was available.

Toyota Motor signed an MoU with Astra International to
separate TAM's distribution and manufacturing operations.

Under the terms of the agreement, the Japanese company will
acquire a 46 percent stake in the manufacturing entity, giving
Toyota a 95 percent stake, and leaving Astra with only a 5
percent stake. Meanwhile, Astra will maintain its majority stake
of 51 percent in the distribution entity and take charge of sales
operations in Indonesia.

Meanwhile, Astra confirmed the divestment would help it raise
cash for debt repayment. The company has an outstanding debt of
$880 million.