Jakarta. President Prabowo Subianto’s younger brother Hashim Djojohadikusumo recently revealed Japanese automotive giant Toyota’s intention to make Indonesia its manufacturing hub for the company to serve the Global South market.

The carmaker’s local arm Toyota Motor Manufacturing Indonesia already has five factories in North Jakarta’s Sunter and West Java’s Karawang. Each plant even boasts an annual capacity of hundreds of thousands of units meant for both the domestic and export markets.

Speaking in a forum full of Indonesian businessmen, Hashim admitted to having spoken with the company’s representatives not long ago. Based on that discussion, Toyota is considering making its Indonesia-based factories the production base for the Global South market, according to Hashim. 

“Toyota says they want to make Indonesia a manufacturing hub for the Global South. Toyota Indonesia exports to 80 countries. Can you imagine? They are even exporting to Mexico,” Hashim said at the Indonesia Economic Summit in Jakarta on Wednesday.

“They want to do more with Mexico. So what do they need? They need a free trade agreement with Mexico. That’s where I come in. I can help companies that need free trade agreements with other countries,” Hashim told the conference.

The term Global South lacks a definitive list of countries that fall within this category. However, it typically encompasses developing economies. It also broadly comprises regions such as Africa, Latin America, the Caribbean, parts of Asia, and Oceania. 

Automotive association Gaikindo’s data shows that Toyota Indonesia had shipped 276,089 units of domestically produced cars overseas throughout last year. Past media reports showed that Mexico had bought Indonesia-made Toyota Avanza and Veloz cars.

Hashim did not go into details on the trade deal that Toyota was eyeing with Mexico. However, Indonesia is currently trying to have better export access to Mexico, particularly through the Comprehensive and Progressive Agreement to Trans-Pacific Partnership (CPTPP).

Last year, Indonesia formally requested to join the CPTPP. Jakarta does not set a deadline for the CPTPP membership and is only hoping to be part of the trading bloc “as soon as possible”, according to Trade Minister Budi Santoso not long ago. Aside from Mexico, the CPTPP includes countries that are often regarded as Global South such as Peru, Chile, Brunei, Vietnam, and Malaysia. The CPTPP eliminates tariffs across all sectors, including motor vehicles.

Government data shows Indonesia-Mexico trade amounted to nearly $2.6 billion in 2024 with Jakarta enjoying a surplus worth $1.9 billion.

Add as a preferred source on Google +