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We rarely genuinely consider where a car comes from. We see it driving past on the highway, accompanying distant adventures, or simply existing as part of daily life. Yet, behind every vehicle that passes, there is a long process and dedication from many people. In Indonesia, that story doesn't stop at merely assembling cars; we create. Among the big names present in the journey of the national automotive industry, Toyota stands as tangible proof that the work of the nation's children is firmly established. Today, the 'made in Indonesia' identity is stronger than ever, marked by the local content of Toyota Indonesia's products, which now averages up to 80%.
This achievement is not the result of an overnight success. This journey began in 1977, marked by the establishment of a factory in the Sunter area, North Jakarta, in response to the Simple Commercial Motor Vehicle (KBNS) policy enacted in the mid-1970s. The policy was designed to drive the domestic automotive industry, requiring the use of some local components in simple commercial vehicles produced in Indonesia at that time. The birth of the first-generation Toyota Kijang became proof of Toyota Indonesia's great commitment to advancing the national automotive industry.
Over time, that commitment evolved into a long journey of building industrial self-reliance. With the spirit of Kaizen continually echoing on the production floors, Toyota Indonesia persistently continued its component localization efforts through more efficient and sustainable methods. From the initial stages, which still heavily relied on importing most components, local capabilities slowly began to grow. Technology was introduced, the technical skills of the workers improved, production capacity was expanded, and domestic suppliers were involved and empowered.
The journey of building this self-reliance can be seen through the seven stages of industrial development that Toyota Indonesia has undergone. Starting from the early phase focused on assembly activities and component imports, the national automotive industry's capability continued to develop and strengthen. Stage by stage, production capacity increased, technology was introduced, the role of local manufacturing was expanded, and component localization was consistently promoted. Until finally, Toyota was able to bring Indonesia to stand as a base for the production and export of complete vehicles to various countries, while also stepping towards the new era of electrification as a crucial foundation for the future of mobility.
As industrial capacity continued to grow, an increasingly strong and widespread collaborative ecosystem was also formed. Within the scope of the Toyota Group (Toyota & Daihatsu), more than 760 local suppliers are now an important part of the integrated national automotive supply chain. The industrial activity born from this synergy has created jobs for more than 360,000 workers in various sectors across Indonesia. This increasingly close collaboration not only strengthens the foundation of the domestic industry but also encourages local suppliers to improve their competence and penetrate the global market through international business and export networks.
The success of the component localization process is clearly visible through several Toyota vehicle models, such as the All New Toyota Yaris Cross and the New Toyota Kijang Innova. These models are a real representation of the increased national production capacity and the strengthening of the domestic supply chain structure, as the majority of their components are made by local suppliers. More than just meeting the needs of consumers in Indonesia, these vehicles have also penetrated the international market as export products. The trust of other countries in using the work of the nation's children proves that the quality standards of Indonesian production can stand on par globally.
In addition to producing complete vehicles, Toyota Indonesia also strengthens its contribution through the development of the engine production line. Since 2016, the engine plant in Karawang has been operating with a large production capacity, making it one of Toyota's strategic facilities in the Asia region. In this production center, the manufacturing process is carried out comprehensively, starting from casting, machining, to assembling. The existence of this facility expands Indonesia's contribution to Toyota's global supply chain, as the engines produced are not only used for the domestic market but are also sent to many countries across various continents.
At this point, the long journey of building industrial self-reliance becomes a reflection of what can be achieved when many hands move with the same goal. Every component installed, every technology learned, and every collaboration established is part of a constantly growing process. The 'Made in Indonesia' identity is now present as the tangible result of working together, not just a production label, but a representation of the collective capability and belief that Indonesia can stand tall on the global stage.
INSPIRE Value targeted through the activities highlighted in this article:
Sustainable Development Goals (SDGs) targeted through the activities highlighted in this article:
