Toyota, Honda plants in Indonesia to remain closed till June 1

12, May. 2020

Dubai, United Arab Emirates (Photo by Alex Azabache on Unsplash)
Dubai, United Arab Emirates (Photo by Alex Azabache on Unsplash)

JAKARTA, NNA – Leading Japanese carmakers Toyota Motor Corp. and Honda Motor Co. will suspend car production at their factories in Indonesia at least until June 1 amid the spread of the novel coronavirus.

PT Toyota Motor Manufacturing Indonesia, Toyota’s Indonesian unit, again closed its two plants in Sentul, North Jakarta, and Karawang, West Java Province, on Monday, a spokeswoman for Toyota Motor in Tokyo told NNA. Operations will not be resumed at the two plants until June 1.

The move follows the suspension of operations at the two factories from April 13 due to large-scale social restrictions the Indonesian government had imposed in a bid to curb the spread of the Covid-19. The local unit had restarted assembling cars for exports at those production facilities from April 27.

The spokeswoman indicated that the company once again halted automobile production at its Indonesian plants because of the sluggish demand for cars. “A major factor behind the latest decision is demand,” she said.

Toyota has yet to decide on a specific date when operations will be resumed at these Indonesian plants, she added.

The two plants have a combined annual production capacity of about 250,000 units and employ about 7,800 workers, according to an official of the local unit.

Honda Motor also said Monday it has extended the suspension of car production in Indonesia until May 31, according to a spokesman in Tokyo.

Its plant in Karawang will remain closed until Pancasila Day on June 1, a public holiday to celebrate the establishment of Pancasila, the state ideology of Indonesia. Car production at the factory has been suspended since April 13.

The plant has the capacity to assemble 200,000 vehicles a year and employs 6,900 workers.

The Japanese maker also halted motorcycle production in Indonesia until June 1, he said.