Toyota Tsusho Plans $100 Million Investment in Solder Paste and Copper Rod Manufacturing
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JAKARTA, Investortrust.id — Japan’s Toyota Tsusho Corporation, part of the Toyota Group, has unveiled plans to invest Rp 1.6 trillion in Indonesia to develop a domestic manufacturing facility for solder paste and copper rods, reinforcing the government’s mineral downstreaming agenda.
The investment plan was discussed during a meeting between Deputy Minister of Investment and Downstream Industry and Deputy Chairman of the Investment Coordinating Board Todotua Pasaribu and Toyota Tsusho executives in Tokyo, Japan, on Friday, Oct. 7, 2025.
Toyota Tsusho, a major global trading and investment company, has long served as a trading partner of PT Timah Tbk, one of Indonesia’s largest tin producers. The company intends to establish a new facility in Indonesia to secure the supply chain for solder paste — a critical material for the global automotive and electronics industries — amid surging demand.
The planned investment is valued at approximately US$100 million, or Rp 1.6 trillion. Discussions remain in the early phase, but both sides expressed intent to explore a partnership with PT Timah as a potential local partner in production and supply.
“Indonesia contributes about 18 percent to the world’s tin supply, positioning the country as a key player in the global value chain,” Todotua said in a statement on Monday, Nov. 10, 2025. “With this strategic position, Indonesia has great potential to strengthen its role in the electronic and automotive components industries. The government is fully committed to supporting all downstream efforts that generate greater domestic value.”
Globally, more than half of all tin consumption is used to produce solder, especially solder paste, which is essential in electronics, automotive manufacturing, and renewable energy sectors such as solar power. Demand for solder paste is projected to rise from 5,170 tons in 2024 to 6,300 tons in 2029.
Beyond tin, Toyota Tsusho also expressed interest in investing in Indonesia’s copper downstream industry, focusing on copper rods as essential raw materials for cable manufacturing. The initiative aligns with growing global demand driven by the expansion of electric vehicles and renewable energy systems.
Todotua welcomed Toyota Tsusho’s long-term commitment to Indonesia and emphasized the government’s readiness to facilitate the project. “We appreciate Toyota Tsusho’s continued trust in Indonesia. The government stands ready to provide comprehensive support, from licensing and business facilitation to operational assistance,” he said.
The meeting with Toyota Tsusho formed part of Todotua’s broader working visit to Japan, aimed at attracting strategic investment partnerships in mineral processing and value-added industrial development.
Japan currently ranks as the fourth-largest foreign direct investor in Indonesia, contributing US$18.89 billion in total investment over the past five years with an average annual growth rate of 12.4 percent. The strengthening of investment ties reflects both nations’ shared commitment to downstreaming, green technology, and sustainable industrial growth.v
In the third quarter of 2025, Japan remained one of Indonesia’s key investment partners, ranking sixth among all sources of foreign direct investment with inflows reaching US$0.71 billion, up 4 percent year on year from US$0.68 billion in the same period of 2024, according to data from the Investment Coordinating Board (BKPM).
Despite global economic headwinds, Japanese capital continued to flow steadily into strategic sectors such as manufacturing, automotive, and mineral downstreaming, underscoring sustained investor confidence and the long-term depth of Japan–Indonesia economic cooperation.