World automotive principals ready to invest Rp 17 trillion.
The foreign principals of the automakers pledged to invest a total of US$ 2.12 billion in Indonesia or the largest in the past decade. Investment in the automotive sector is expected to be larger as large investment would also be needed in the upstream sector and other related sectors. At least five automotive giants from Japan and China have indicated strong interest in launching long term investment plans in the country. The foreign principals include Toyota Motors Corporation, Daihatsu Motors Co Ltd, Suzuki Motor Corporation, Nissan Motor Company, and Zhejiang Geely Holding Group (Geely Automobile Holding Ltd). Toyota Motor, for example, plans to invest US$ 388 million (Rp 3.l trillion) to expand the capacity of its local unit PT Toyota Motor Manufacturing Indonesia with factory in Karawang, West Java, from 100,000 units to 200,000 units. Toyota also plans additional investment of US$ 312.5 million to expand its sales networks from 210 units to 350 units by phases. Meanwhile, Daihatsu will increase investment by US$ 262.5 million to build a factory with a capacity of 100,000 units. Suzuki plans a new investment of US$800 million. Nissan does not want to be left behind. It plans to expand its production capacity to 180,000 units with an additional investment of US$ 312.5 million starting in 2011. Geely starting this year invested US$ 50 million to expand the capacity of its factory to 30,000 units. The Chinese car maker even has long term investment plan of US$ 2 billion. Apart from Japanese and Chinese principals, major car makers from Europe such as Mercedes-Benz, Bayerische Mo-toren-Werke (BMW), and Volkswagen AG have also indicated interest in increasing their investment or starting business in the country.
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|Title Annotation:||Economic News in Brief|
|Publication:||Indonesian Commercial Newsletter|
|Date:||Aug 1, 2011|
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