JAKARTA: New investments on new factories and expansions in Indonesian automotive industry may reach IDR10.91 trillion.Automobile makers Daihatsu has reported to the Trade Ministry that it will spend IDR1.2 trillion, while Toyota will spend IDR1.7 trillion, BMW IDR100 billion, according to Budi Darmadi, a senior trade ministry official in charge of high technology industries. Suzuki and Nissan have also reported their planned investment to the ministry, but no figures are available.Generally, all investment plans have been confirmed because most have prepared detailed plans and architectural designs, inculding heavy equipment leasing to start construction this year, Budi Darmadi said.The surge in the investment plans is in line with the growth of Indonesian car market, in which total sales is predicted to reach 830,000 cars this year and will surge to 1 million cars in 2014.Almost all investment is allocated to increase production capacity, as some plan to offer new models and to develop factory of engines and components, Budi added.The disbursement of the investment funds, Budi said, will be done gradually. Some sole agents have actually set bigger funds, such as Daihatsu with total investment of US$400 million, or IDR3.42 trillion (IDR8,549 per US$).Completed in 2 yearsBudi predicted that investment in factory construction would complete in 2 years, so by the end of next year some principals could start operating their new factories.But keep in mind that the investment is not always in the form of physical construction like factories because every principal planning to produce new models must invest in equipment and supporting infrastructure, he said.Toyota investment is expected to complete by the end of 2012, said President Masahiro Nonami at PT Toyota Motors Manufacturing Indonesia.The investment, according to Nonami, is a real commitment of Toyota Motor Corp to continue increasing production activities and sales in Indonesia.The investment will be used to build a new factory in Krawang Plant, West Java, where about 400 new workers will be hired. Its the number of direct workers, excluding workers from the suppliers' side such as component makers, PT Toyota -Astra President Johnny Darmawan said.Separately, PT Nissan Motor Indonesia Marketing Director Teddy Irawan revealed that investment of US$20 million will be used to increase production capacity to 100,000 cars annually from 50,000 currently.The process is running. It is expected that the facility expansion to double production capacity will complete in September, he said. (T04/NOM)
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