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Automobile industry

Indonesia Aims to Become Automotive Production Hub

Strategic Insights

— 1 min read

Indonesia aims to become a major player in the global automotive industry with President Susilo Bambang Yudhoyono's plan to make the country a base for automotive production. The President's vision is to create a competitive edge for the national automotive industry, which is currently dominated by foreign investors. With the inauguration of PT. Yamaha Motor Indonesia's second factory in Karawang, West Java, the government is taking concrete steps towards achieving this goal.

Key Takeaways:

  • The Indonesian government plans to make the country a base for automotive production to boost its competitive edge.
  • President Susilo Bambang Yudhoyono has inaugurated the second factory of PT. Yamaha Motor Indonesia in Karawang, West Java, a US$70 million investment that will have a production capacity of 300,000 units a year and employ 700 workers.
  • The factory's capacity will be increased to 1.2 million units per year and the number of workers will be raised to 6,000 in the future.
  • In 2005, PT. Yamaha Motor Indonesia produced 1,234,858 motorcycles from its first plant in Pulogadung, East Jakarta.
  • The company will raise production capacity of motorcycles to 2.0 million units annually with the addition of the new plant.
  • Indonesia had been exporting its Yamaha motorcycles to 26 countries.
  • The government aims to remind automotive investors to not only expand their sales in Indonesia but also to bolster their production facilities and eventually make Indonesia their hub.

Statistics:

  • US$70 million: The cost of the new Yamaha factory in Karawang, West Java.
  • 300,000 square meters: The area of land covered by the new factory.
  • 300,000 units: The initial production capacity of the new factory.
  • 1.2 million units: The increased production capacity of the factory in the future.
  • 700 workers: The number of workers employed by the new factory in the initial stage.
  • 6,000 workers: The number of workers that will be employed by the factory in the future.
  • 2.0 million units: The increased production capacity of motorcycles with the addition of the new plant.
  • 1,234,858: The number of motorcycles produced by PT. Yamaha Motor Indonesia in 2005 from its first plant.
  • 26 countries: The number of countries that Indonesia had exported Yamaha motorcycles to.

Sources:

  • (Asia Pulse, January 30)
  • (ANTARA, January 30)

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