Indonesia's role in the global automotive industry is evolving, with its operations expanding beyond assembly to include production and innovation.

This was noted by Bob Azam, Vice President Director of Toyota Motor Manufacturing Indonesia (TMMIN), who stated that the country is becoming a production base for Toyota.

In his remarks at an event held at the Toyota factory in Karawang, West Java, on 9th October 2025, Bob explained that this development represents a point of change in Indonesia's position within the global automotive sector.

He emphasised the need to establish Indonesia as a production base capable of supplying international markets.

The attendance of Toyota Motor Corporation (TMC) President Koji Sato and Daihatsu President Masahiro Inoue at the event reflected recognition of Indonesia's role by the principal.

Bob further indicated that Indonesia's operations are no longer limited to assembly but now include a higher level of local content.

He stated, "The operations in Indonesia now include local production and components, engagement in the electrification sector, and plans for future expansion of research and development (R&D)."

The focus on strengthening R&D in Indonesia is based on strategic considerations. Bob noted that the country's demographic profile, with a large proportion of young people, and government support for higher education provide conditions for R&D development.

He added that the large population of university graduates and government initiatives such as the LPDP support the development of R&D capabilities.

Indonesia is expected to serve as a production centre for Toyota vehicles and contribute to the development of automotive technology.

Collaboration among industry, government, and academia is considered important to support the country's transition to electrification and clean energy.