Toyota to More Than Double Capacity in Indonesia

Toyota Motor Corp. says it will invest about 13 trillion rupiah ($1.3 billion) in Indonesia over the next five years on projects that include boosting its annual production capacity to 250,000 vehicles by 2014 from 110,000 units now.

The company plans to initially expand the capacity of its assembly plant in Karawang near Jakarta to 130,000 units per year by next September. Toyota also intends to erect a second assembly facility and an engine factory near the existing plant.

The spending includes an R&D center and testing facility for affiliate Daihatsu and several previously disclosed projects, including an expansion at Karawang unveiled in February.

Toyota says it could eventually hike its total investment to $2.7 billion as the Indonesian car market grows. The country's population of 240 million is the world's fourth-largest after China, India and the U.S. But fewer than one in 20 Indonesians owns a car.