Toyota, Suppliers To Invest In Indonesian Auto Venture.(Toyota Motor Corp. )(Brief Article)

Toyota Motor Corp. will pour $180 million into its auto joint venture with Indonesia's PT Astra International during 2003-2005, Astra Chief Executive Budhi Setiadharma said. The official said the capital injection is part of Toyota's plan to boost car exports from its manufacturing joint venture in Indonesia, PT Toyota Astra Motor (TAM). He added that other "suppliers who take part in car manufacturing with TAM will also invest a total $200 million in funds."

Toyota and Astra signed a preliminary nonbinding agreement under which the Japanese company will increase its stake in TAM to 95 percent from 49 percent currently, Astra said. This will reduce Astra's stake in TAM to 5 percent from 51 percent. Officials from Toyota and Astra declined to mention how much Toyota will pay for the additional stake. But analysts estimate the value of the stake around $200 million.

Astra has been selling off assets, including stakes in a number of joint ventures, since the 1997-98 Asian financial crisis, in an effort to pay off its debt.

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