The positive record of Indonesia's automotive exports last year provided its own optimism for Toyota in maintaining export performance in 2019. The plan was for them to expand their destination countries, including Australia.
"We project that the performance of Toyota-branded CBU exports will increase by more than 5%. We are still conducting studies to study new export destinations including to Australia," said Warih Andang Tjahjono, President Director of PT. Toyota Motor Manufacturing Indonesia (TMMIN) in an official statement received by Carstudios.
"At the same time we are also trying to remain focused in terms of maintaining the stability of export performance in the new destination countries of the past 2018 expansions such as Africa and Latin America," he continued.
All Toyota vehicles exported intact or Completely Built-Up (CBU) have spread to 80 countries around the world, namely countries in Asia, Africa, Latin America, the Caribbean and the Middle East with domestic content reaching 75% to 94%.
"The true localization of products starting from the use of domestic material sources is a fundamental effort to maintain competitiveness. At the same time, these activities can help reduce the import of raw materials so that they can contribute to the stability of the trade balance, especially in the automotive component sector, which is currently still a concern of the Government, "said TMMIN Director Administration, Corporate & External Affair Bob Azzam.
The abundance of raw materials and raw materials for the automotive manufacturing industry sourced from imported materials also influenced the TKDN of Indonesian automotive products. With so many imported materials, making pure TKDN or "true localization" is not as high as expected.
Furthermore, he said that inefficiency is one of the fundamental obstacles to the operation of small industrial businesses in Indonesia, especially as industrial competitiveness is the key to winning competition.
"There is no way other than increasing the competitiveness of the domestic industry from upstream to downstream to be able to maintain Indonesia's position as one of the production and export bases in the Asia-Pacific region.
To combat these inefficiencies, continuous effort is needed in building Human Resources (HR), especially debriefing basic skills, which in turn will play a role in increasing efficiency.
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