Toyota to Build Engine Plant in Indonesia

Toyota Motor Co. plans to open a new 23 billion-yen ($231 million) engine factory in Indonesia in the first half of 2016.

The company says the facility will have capacity to make 216,000 engines per year for passenger cars in local and export markets. The factory will be located near Toyota's two assembly plants in Karawang, 30 miles from Jakarta.

Toyota also has stamping and engine facilities in North Jakarta. The latter has annual capacity to produce 195,000 engines for minivans, pickup trucks and SUVs made in Indonesia, Thailand, Latin America and Africa.

The company owns 95% of its Indonesia manufacturing joint venture. The balance belongs to the country's largest auto distributor, PT Astra International Tbk.