Located in a 150-hectare area in the Karawang Jabar Industrial Estate in Karawang, West Java, the engine plant is slated to generate 216,000 engines each year after commencing operations in early 2016.

TMMIN president director Masahiro Nonami said half of the new plant's output would be exported, while the rest remained for the domestic market.

"It means Toyota Indonesia will have a more significant position as we will be a global production base, not only for vehicles, but also for engines," Nonami said during the ceremony attended by Industry Minister MS Hidayat and Investment Coordinating Board (BKPM) chief Mahendra Siregar.

The new plant is the second engine plant for TMMIN. Its first is located in Sunter, North Jakarta, and produces various engines for Toyota's international multipurpose vehicles: the Hiluxpick-up truck, the Innova minivan and the Fortuner sports utility vehicle.

The first plant's output has been sold in a number of countries in Asia, Africa and South America.

Overall, TMMIN now operates four plants: Karawang Plant I and Plant II in Kawasan International Industrial City, producing the Kijang Innova, Fortuner and Etios Valco hatchback, and Sunter Plant I and Plant II in North Jakarta, which produces engines and carries out a series of manufacturing processes including stamping and iron casting. (nvn)