Daihatsu invests Rp1.2 trillion to expand production capacity

Jakarta (ANTARA News) - PT Astra Daihatsu Motor (ADM) has added Rp1.2 trillion to its investment in Indonesia by expanding its production capacity to 211,000 cars annually, the company`s vice president, Sudirman MR, said.

Sudirman made the statement during the commissioning of the company`s expanded assembling plant by President Susilo Bambang Yudhoyono on Tuesday. The event in Sunter, North Jakarta, was also attended by Industry Minister Fahmi Idris, Transportation Minister Jusman SD and other cabinet ministers.

"With the factory`s expansion, ADM`s car assembling capacity has been increased to 211,000 units per annum. It can even be stepped up further to 250,000 units if we do overtime," he said.

Sudirman said 16 percent of ADM`s output were exported to other countries in completely-knocked-down (CKD) and completely-built-up (CBU) conditions.

ADM was also producing cars such as the Avanza and Rush in cooperation with Toyota.

He said ADM was exporting part of its output to a number of countries in Asia, Africa and Latin America such as Mexico and Venezuela.

The company has been expanding its factory since last year with an investment of Rp1.2 trillion. About 2,200 new workers were recruited, increasing the number of its workers to 8,250 at the end of 2007, he said.

Sudirman also reported that the local content of ADM`s products had reached 75 percent of production cost. This percentage would continue to be increased in line with the development of local component industries.

On the occasion, President Susilo Bambang Yudhoyono said he had asked his cabinet ministers to formulate an integrated policy in response to rapid development in the automotive field.

"I have instructed related ministers to respond to the rapid development of the automotive industry with appropriate policies and actions," Yudhoyono said.

The president asked the ministers of transportation, economy, trade, industry, energy and mineral resources, public works, environment, as well as National Police chief to adopt an integrated policy and measures in response to rapid automotive development.