As An Export Base, Toyota Indonesia Invests IDR 2.5 Trillion For Local Yaris Cross Production

The assembly process for Toyota Yaris Cross at the TMMIN Karawang factory, West Java. (Doc. TMMIN)

JAKARTA - Along with the production of the Yaris Cross SUV locally, Toyota Motor Manufacturing Indonesia (TMMIN) has allocated an investment of around IDR 2.5 trillion to make the launch of this latest model successful.

Toyota Yaris Cross is one of the models produced locally by TMMIN at the Karawang 1 and 2 factories, located in West Karawang, West Java.

The President Director of PT TMMIN, Nandi Julyanto, explained that the launch of a new model or model update requires significant investment, reaching trillions of rupiah. Moreover, the latest technology is used in the production of this model.

"For the new model or change model, it's around IDR 2.5 trillion, and we have a new battery line, not all line fits for the unit. That's what we always do. Not only for the production line, we also place the investment on the supplier side," said Nandi, as quoted by ANTARA on Monday, August 7.

The production plant has a total production capacity of factories 1 and 2 Karawang, which also produces models such as Innova, Fortuner, Vios, and Sienta, reaching 257,000 units per year. Currently, the level of use of new production capacity reaches 70 to 80 percent.

With production capacity that has not yet reached 100 percent, the production of Yaris Cross at factory 1 Karawang currently fills the void, although it has only reached a level of use of around 90 percent. Therefore, TMMIN has a plan to optimize production capacity to meet demand.

Nandi explained that in the short term, TMMIN plans to increase production capacity until 2025 by utilizing the available production capacity to increase efficiency.

"Meanwhile, in the long term, there is a plan to increase production capacity," added Nandi.

This investment is also in line with TMMIN's efforts to build an electric vehicle ecosystem in Indonesia. In this effort, TMMIN continues to form partnerships with various parties.

"We always start this collaboration from people development, yes, if people development is ready, it will only be a production problem," added Nandi.

With the production of Yaris Cross, Indonesia has further confirmed its position as one of the producing and exporting countries of Toyota vehicles in the Asia Pacific region, including electric vehicles. Yaris Cross is the second locally produced electrification model, after Kijang Innova Zenix, and is aimed at domestic and export consumers.

As an export base, Toyota Indonesia targets more than 22.000 units to be exported to Latin America and Asia this year. The hope is that the number of exports will continue to increase from year to year, reaching 40,000 units by 2025.