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eptember 4, 2008

Toyota set to build $27m parts facility in Indonesia
Indonesia's biggest car seller, PT Toyota Astra Motor (TAM), will spend 249 billion rupiah ($27 million) to build a new auto-parts facility on Cikarang industrial estate, West Java, reported local daily the Jakarta Post.

President director Johnny Darmawan said Wednesday the facility would compliment an already built auto-parts facility in Sunter, North Jakarta, by guaranteeing supply for Toyota's domestic and international customers.

The facility, which will function primarily to distribute and supply auto parts, will be built on a 10-hectare plot.

"This center will be able to anticipate demands until 2015. Toyota car sales in Indonesia in 2015 will reach about 300,000 units, while this year we hope to reach 200,000 units," TAM marketing director Joko Trisanyoto said as reported by Antara.

TAM aims to sell 193,000 units this year, or equivalent to 34 percent of the total 570,000 units predicted to be sold in the country in the period. As of the end of July, TAM had sold 119,000 units this year.

The company also exports its products through one of its units, PT Toyota Motor Manufacturing Indonesia, to Thailand, Brunei, Malaysia, the Philippines and the Middle East.

Last year, TAM sold 152,040 cars, or 35 percent of market share. As of the end of the first semester, TAM held 33.7 percent of market share.

The latest data from the Association of Indonesian Automotive Industries shows that behind Toyota in market share were Mitsubishi and Suzuki in second and third with 14.9 and 13.4 percent shares, respectively.

TAM said earlier it would continue to gradually raise product prices until the end of the year by an average of 10 percent to compensate for increasing material costs. Among TAM's car models are the Avanza, Kijang Innova and Fortuner.

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