The Thaiger
Indonesia asks Toyota to move main production hub out of Thailand
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Indonesia’s finance minister has publicly invited Toyota to move its main Southeast Asian manufacturing operations from Thailand to Indonesia, offering the Japanese carmaker incentives to support a potential relocation.
Key facts
- Purbaya Yudhi Sadewa made the proposal on August 4 at the Gaikindo Indonesia International Auto Show in Tangerang, where he spoke directly to a group of Toyota executives .
- Indonesia’s finance minister has publicly invited Toyota to move its main Southeast Asian manufacturing operations from Thailand to Indonesia, offering the Japanese carmaker incentives to support a potential relocation.
- The incentive package outlined by Purbaya includes a luxury goods sales tax exemption of up to 100% and a 40% government-borne VAT reduction for qualifying vehicles.
- Purbaya said the automotive sector accounts for around one fifth of Indonesia’s economy, employs 1.5 million people and has an installed production capacity of 2.5 million vehicles per year.
Summary
Purbaya Yudhi Sadewa made the proposal on August 4 at the Gaikindo Indonesia International Auto Show in Tangerang, where he spoke directly to a group of Toyota executives .
“We will support Toyota, but they must bring their main manufacturing operations from Thailand to Indonesia. We will provide all required incentives,” Purbaya said.