Large multinationals Proctor & Gamble (P&G) and Samsung this week announced increases to their Indonesian manufacturing capacity, while Toyota also reaffirmed its commitment to Indonesia as a major production hub. As well as exports, their products are also aimed at Indonesia’s growing domestic demand.

Toiletries and Home Products giant P&G said it had experienced a double-digit growth in Indonesian demand for its products, which it will meet with a new local plant and office building to manufacture the Gillette, Pantene and Olay product ranges.

Korea’s Samsung C&T said it will invest US$150-200 million in a 50 megawatt solar power plant, after conducting feasibility studies into possible locations in Java, Bali or elsewhere.

Meanwhile Toyota, which has already exported 225,382 complete vehicles via its local subsidiary PT Toyota Astra Motor (TAM) since 1987, says Indonesian domestic  demand is growing rapidly and may reach 1 million units a year within two years. It has already sold 85,494 units this year, a 24% increase on the same period in 2010, and has a 37.9% share of the Indonesian market.

TAM President Johnny Darmawan said his company intends to make Indonesia a major manufacturing base, but also sounded the familiar call for increased commitment from the government in the form of road, port and power improvements and reliable human resource skills.