Indonesia one of Daihatsu's important car production bases

Jakarta (ANTARA News) - Daihatsu Motor Corporation (DMC) has made Indonesia one of its important car production bases capable of contributing 10 percent to its worldwide output, a spokesperson said.

DMC plans to produce 1.3 million cars around the globe this year and will make 10 percent of the total figure in Indonesia, DMC president director Teruyuki Minoura said when commissioning an Astra Daihatsu Motor (ADM) engine factory in Karawang, West Java, Thursday.

DMC, he said, had a commitment not only to assemble cars in Indonesia but also carry out transfer of technology and knowledge as well as help develop human resources in Indonesia.

Minoura pledged to continue increasing the local content of ADM cars made in Indonesia from 70 percent to 95 percent gradually and cooperate with local suppliers in the making of ADM cars.

He said Indonesia was the largest market for Daihatsu automotive products outside Japan.

Daihatsu which has been making cars in Indonesia since 1979 sold about 48,000 cars in Indonesia last year.

Meanwhile, ADM vice president director Sudirman MR said an increase in engine production to 150,000 in Karawang factory was made to raise Daihatsu`s production target from 114,000 cars to 150,000 cars a year.

"The factory is designed to enable the production of up to 200,000 engines and assemble 400,000 cars," he said.

ADM Indonesia had exported 1,300-cc engines to Italy since 2004, he said adding that Daihatsu had also teamed up with Malaysia to develop a Malaysian car called Pero 2.

ADM, therefore, was exporting 2,000 cylinder heads to Malaysia per month.

ADM was cooperating with Toyota Astra Motor in the production of Xenia and Avanza minivans as well as Terios and Rush SUVs.