Automotive: Toyota's Investment Realization in Indonesia at 70%

Toyota materializes its investment commitments through its two Indonesian units: Toyota Motor Manufacturing Indonesia (TMMI) and Toyota Astra Motor (TAM). The Japanese-based company made Indonesia one of its production hubs, both for sales on the Indonesian market and for exports abroad. Initially global car manufacturers were attracted to invest in production facilities in Indonesia because of the country's low minimum wages and relatively low land prices. The cars would then be shipped abroad. However, when car sales in Indonesia started to surge drastically in the years 2010-2013, Indonesia has also become an attractive sales market for global car manufacturers.

Currently, Toyota already owns five plants in Indonesia, all located around Indonesia's capital city of Jakarta.

Factories of Toyota in Indonesia:

Factory	Products Manufactured	Remark
Karawang 1	Kijang Innova, Fortuner
Karawang 2	Etios Valco, Limo, Yaris
Karawang 3	Gasoline engine, ethanol type RNR	This factory focuses on the manufacturing of export products
Sunter 1	Gasoline engine, ethanol type TR
Sunter 2	Stamping parts/dies, iron castings

^{Source: Bisnis Indonesia}

Around 50 percent of vehicles manufactured by Toyota in Indonesia are shipped abroad, mostly to other ASEAN countries and Africa.

In Indonesia, Toyota is the clear market leader controlling about 36 percent of the car sales market. TAM says its Toyota car sales in Indonesia climbed 19 percent (y/y) to 349,707 vehicles in full-year 2016. Considering overall car sales in Indonesia may only have grown 5 percent (y/y) in 2016, it implies Toyota managed to expand its market share in Southeast Asia's largest economy.

Read more: Analysis of Indonesia's Automotive Industry

Although the official data still need to be released, Indonesia's total car sales in full-year 2016 are estimated at 1.05 million, modestly rising from 1.01 million sold vehicles in the preceding year. Since 2013 Indonesian car sales have been bleak due to people's weakening purchasing power amid slowing economic growth, falling commodity prices and Bank Indonesia's high interest rate environment in the 2013-2015 period.

Toyota's Wholesale Car Sales in Indonesia:

	2013	2014	2015	2016¹
Car Sales (car units)	434,232	399,119	321,818	349,707
Market Share (%)	35.3	33.0	31.9	35.9

^{¹ January-November period only
Source: Gaikindo}

Indonesian Car Sales (CBU):

Month	Sold Cars       2012	Sold Cars       2013	Sold Cars       2014	Sold Cars       2015	Sold Cars       2016
January	76,427	96,718	103,609	94,194	85,003
February	86,486	103,278	111,824	88,740	88,208
March	87,917	95,996	113,067	99,410	94,093
April	87,144	102,257	106,124	81,600	84,770
May	95,541	99,697	96,872	79,375	88,567
June	101,746	104,268	110,614	82,172	91,498
July	102,511	112,178	91,334	55,615	61,893
August	76,445	77,964	96,652	90,537	96,291
September	102,100	115,974	102,572	93,038	93,156
October	106,754	112,039	105,222	88,408	91,846
November	103,703	111,841	91,327	86,938	±99,650
December	89,456	97,706	78,802	73,264
Total	1,116,230	1,229,916	1,208,019	1,013,291

 

	2008	2009	2010	2011	2012	2013	2014	2015
Car Sales (car units)	607,805	486,061	764,710	894,164	1,116,230	1,229,916	1,208,019	1,013,291
Car Exports (car units)	100,982	56,669	85,769	107,932	173,368	170,907	202,273	207,691

^{Source: Gaikindo}

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