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JOIN Supports the Automotive Proving Ground Project in Indonesia

   Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN) announces its decision and receipt of approval from the Minister of the Land, Infrastructure, Transport and Tourism of Japan, to provide capital up to approximately JPY 1.4 billion and debt guarantee of approximately JPY 5.4 billion in the automotive proving ground project in Indonesia jointly with Toyota Tsusho Corporation (Toyota Tsusho) and local partner companies. This project is to design, construct, and maintain a vehicle proving ground in Bekasi Regency, in the west of West Java, carried out by the Indonesian Ministry of Transportation as a public-private partnership. This vehicle proving ground will meet the United Nations Regulations (UNR) based on the ASEAN (Association of Southeast Asian Nations) Mutual Recognition Agreement (ASEAN MRA) for the vehicle industry established in 2020.

   Indonesia is home to several Japan-based automobile manufacturers and is becoming a key production and sales hub for Asia in the vehicle industry. At present, when Indonesian-manufactured vehicles are exported within ASEAN, they need to re-obtain vehicle type certification at their destination country before they can be sold, but a proving ground that complies with UNR based on ASEAN MRA should increase fluidity and flexibility within ASEAN for vehicles that have been certified in Indonesia.

   JOIN will establish a new company, PT Indonesia International Automotive Proving Ground, with Toyota Tsusho and local partners. This company will be contracted by the Indonesian Ministry of Transportation to design, construct, and maintain a vehicle proving ground in Bekasi Regency, West Java. This business will undertake the design and construction of a facility that can perform certification testing for the 16 items in UNR, based on the ASEAN MRA, and includes 15 years of maintenance following its completion. In addition, the proving ground will also be able to handle certification testing for electrified vehicles, which are anticipated to experience increased demand in future, so is expected to have an influence on automobile policies in Indonesia.

   This investment is also expected to contribute to the objectives of the Japanese Government’s “Infrastructure System Overseas Promotion Strategy 2025”. Through this project, JOIN will work to energize Indonesia’s automobile industry and increase its international competitiveness, contributing to the further development of Asia’s economy.

JOIN Supports the Automotive Proving Ground Project in Indonesia