Jakarta, February 20, 2025 – Japanese automotive manufacturer Toyota is evaluating the possibility of establishing Indonesia as a manufacturing hub for the Global South market, according to Hashim Djojohadikusumo, businessman and brother of President Prabowo Subianto.
Toyota Motor Manufacturing Indonesia (TMMIN), the company’s local division, currently operates five factories in North Jakarta’s Sunter and West Java’s Karawang. These facilities have an annual production capacity of several hundred thousand units, serving both domestic and international markets.
Speaking at the Indonesia Economic Summit in Jakarta, Hashim stated that Toyota representatives had expressed interest in expanding Indonesia’s role as a production base for exports to developing markets.
“Toyota aims to make Indonesia a manufacturing hub for the Global South. Toyota Indonesia exports to 80 countries, including Mexico,” Hashim said during the forum.
Trade Agreements and Expansion Plans
Toyota is reportedly exploring opportunities to enhance trade with Mexico, a key market for Indonesian-made vehicles such as the Toyota Avanza and Veloz. Hashim noted that the company would benefit from a free trade agreement between Indonesia and Mexico to facilitate exports.
While specific trade negotiations were not disclosed, Indonesia has been working to improve export access to Mexico, particularly through its bid to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The CPTPP, a major trade pact, includes member countries such as Mexico, Peru, Chile, Brunei, Vietnam, and Malaysia, and aims to eliminate tariffs across multiple sectors, including the automotive industry.
According to data from the Indonesian Automotive Industry Association (Gaikindo), Toyota Indonesia exported 276,089 vehicles in 2024. Official trade figures indicate that Indonesia-Mexico trade totaled nearly $2.6 billion last year, with Indonesia maintaining a trade surplus of $1.9 billion.
The Global South, though lacking a fixed definition, typically refers to developing economies in Africa, Latin America, the Caribbean, parts of Asia, and Oceania. Toyota’s potential expansion aligns with broader efforts to strengthen Indonesia’s position in global automotive supply chains and international trade.
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