Currently, Indonesia is the third most important investment destination country for Japan in the manufacturing sector. Cooperation between the two countries is strengthened by the IJEPA agreement agreement. Most cars in Indonesia today are made in Japan. Currently the automotive market in Indonesia is still dominated by cars such as Toyota, Daihatsu, Suzuki, and Honda. Indonesia as one of the developing countries in Southeast Asia is said to be able to survive amid the turmoil of the crisis of world trade market. Indonesia is able to sustain its economic growth and has little effect on the domestic crisis. Indonesia in terms of the development of the automotive industry is intensively implementing bilateral cooperation such as Japan which is strengthened by IJEPA agreement agreement.
Currently there are 560 large Japanese companies in Indonesia and about 3,500 private businesses operating in Jakarta. In 2013, Japanese investment in the country reached 4.7 billion US dollars, up 90 percent over the previous year. With that figure Japan contributes 17 percent of total foreign investment in Indonesia.
With the Indonesia Japan Economic Partnership Agreement
(IJEPA), the import of raw materials from Japan to Indonesia has become very easy and the import duty price has dropped because of the IJEPA agreement, with this agreement Japan has the opportunity to increase its investment in Indonesia, besides Japanese cars in Indonesia very in demand by the people of Indonesia, Japanese cars are known by treatment is cheap and the selling price is stable. Moreover, the engine is powerful and durable, like the sumo wrestlers in their home country. The main inclusion is in the class of 1,500 cc or smaller, although a 1600 cc engine and up is still there. Brands such as Toyota, Honda, Mitsubishi, Suzuki, Daihatsu, Mazda, Nissan, would have been familiar to the people of Indonesia, especially Toyota.
Of the cooperation is expected to help increase investment in Indonesia. Where PMA like Toyota in Indonesia invests through the development of the automotive industry, which then car production from year to year continues to grow and this is what happened in Indonesia, Partnership Toyota is started with a joint venture company. With an initial 51 percent shareholding share held by Toyota Astra Motor (TAM) and 49 percent by Toyota Motor Corporation (TMC) from Japan. Ownership of this stock then changed after the success experienced to be 95 percent held by TMC and 5 percent more held by Astra Motor, especially in manufacturing. Then from the margins of both companies is formed TMMIN (Toyota Motor Manufacturing Indonesia) based in Jakarta, with each covering areas including casting, maching, stamping, assembly in different areas in Indonesia.
Along with the development of Toyota, Indonesia also experienced a change from the only limited importers and distributors Toyota brand is now a sales dealer. This change is certainly supported by market conditions in Indonesia that provides opportunities for the development of the company. No half-hearted Toyota is experiencing a rapid change able to establish five dealers in different areas of Indonesia. The five Toyota dealerships are Auto 2000, PT New Ratna Motor, Hadji Kalla NV, PT Hasrat Abadi, and PT Agung Automall. The five dealers are spread to several areas in Indonesia.