Foundation to Advancement of the Automotive Industry (Part 2)

Looking far ahead, Toyota Indonesia assesses the strategic need to strengthen supply chains and production. In 1982, Toyota Indonesia was recorded as the only manufacturer that brought the production of car engines to the country.

The factory controlled by PT Toyota Engine Indonesia (TEI) has produced a gasoline-based 5K type engine. Engine variants originating from the Corolla sedan innards, as well as weapons for local products Kijang.

To strengthen production, the TEI plant brought the entire 5K production line along with the infrastructure that was previously in the Kamigo Plant, Japan. The TEI plant is still standing strong today in the Sunter II complex.

Even since it was originally established, TEI has produced machines with local content reaching 60%. The factory is also equipped with a machine block casting facility.

Until  1991, TEI succeeded in doing a comprehensive production for car engines. It ended with the establishment of a machine block manufacturing facility.

Through these factories, Toyota Indonesia's initial export initiative began. As a manufacturer, Toyota Indonesia is a pioneer breaking into the global market.

Toyota began shipping the 3rd generation Kijang or also known as the Super Kijang in 1987 to Brunei Darussalam. In the following year, 5K engines needed by Malaysia, Taiwan, India, and South Africa began to be shipped. Toyota Indonesia is trusted to export 5K engines to Japan to complete the Lite-Ace car engine and Toyota forklifts.

Entering the new millennium, Toyota Indonesia is going through a more advanced phase. Indonesia is believed to be one of the export-oriented production bases in the Asia-Pacific region, whipping up these productions of Toyota Indonesia to 100,000 units per year.

To fulfill this production volume, Toyota Indonesia is focusing on the construction of a new factory with a wider area and has complete infrastructure. Karawang, located in West Java, is an ideal location for the mission.

So, in 2000, Toyota Indonesia also had a manufacturing facility in Karawang. The plant is fairly complete with world-class automotive production facilities that combine high technology, human resource expertise, and concern for employees and the environment.

Exported products produced in Karawang include Kijang Innova and Fortuner. Until 2013, Toyota Indonesia again boosted production capacity by establishing Karawang II production facilities.

Until then, the total installed production capacity in the Karawang I and II factories has reached 250,000 units per year. In addition to producing Innova and Fortuner, Toyota Indonesia is believed to gush the production of passenger vehicles such as Vios, Yaris, and Sienta.

Along with its commitment to increase the local content of passenger vehicle products, as well as playing an active role as a global supply chain, Toyota started production operations at the Karawang III engine plant. The plant produces aluminum-based NR type machines used by Vios, Yaris, and Sienta. Products from the Karawang III factory are also exported to several countries in Asia.