The move reflects investors’ confidence in Indonesia’s business climate and automotive sector, Industry Minister Saleh Husin said after meeting Toyota’s executive vice president Seiichi Sudi in Nagoya, Japan.

“Toyota is serious about doing business in Indonesia,” Saleh said in a statement.

Toyota is investing a total of US$1.5 billion in the country from 2015 to 2019, Saleh said.

The Toyota group is completing the construction of an engine plant in Karawang on the outskirts of the capital Jakarta, the ministry said.

Toyota controls about 32 per cent of Indonesia’s car market.

More than 1 million cars were sold in In donesia last year, down from 1.2 million in 2014, according to the Indonesian Automotive Mananufaturers Association.

– DPA