Emerging Country Development

Challenges and Contributions to Emerging
Countries—Forging ADM’s Future

Current Roles and Missions at ADM

H.Y：
I oversee production engineering at PT Astra Daihatsu Motor (ADM), our Indonesian subsidiary. I was appointed in 2022, and over the last few years, I have taken primary responsibility for the launch of the second production line at the Karawang Vehicle Plant. In particular, I led the project with a focus on “Safety, Quality, Delivery, and Cost (SQDC),” ensuring that both local personnel and Japanese expatriates could come together as a unified team.

M.H：
As the head of the Production Division, I was in charge of preparatory set-up for the body, assembly, and painting sections during the Karawang Plant launch process. Under the new organizational structure, I am now watching over a broader range of production lines. The core theme here is how to best use the latest equipment to turn it into a competitive edge for frontline operations.

K.N：
My role as the head of production engineering is to provide support for both new and old plants. I was assigned here from Thailand in 2023, and I am currently prioritizing collaboration with local personnel with the aim to instill an approach of “locally driven manufacturing.”

ADM’s Strengths Amidst Cultural Differences

M.H：
In terms of work style, ADM personnel are very flexible and there is a wonderful atmosphere that encourages experimentation and trying new things. When there is a problem, they naturally turn toward figuring out how to overcome it as a team, rather than worrying about whose responsibility it is. Compared to my experiences in Japan, this approach was quite fresh and novel. Although it initially caught me by surprise, I now view it as one of ADM’s strengths. They also have a positive attitude toward new initiatives, and they welcome proposals from my end with an attitude of “let’s try it and see.” That is why it seems easier for ADM to tackle even challenging initiatives as a single unified team.

K.N：
What the local population wants is a “practical car” rooted in their lifestyle. A car that can transport many people, doesn’t break down frequently, and is affordable as well. I believe our mission at ADM is to tackle these consumer needs head-on. Japanese personnel assigned here to work in production engineering generally communicate with local staff in the Indonesian language. They prioritize tackling manufacturing together with them and from the same perspective, including both language and culture.

H.Y：
ADM is one of the Daihatsu Group’s largest overseas production hubs as well as one of Indonesia’s leading automobile manufacturers. This is my first assignment to a position in Indonesia, and I was deeply impressed with how earnestly the local personnel tackled the work. They pay close attention to deadlines and costs, and I was often reminded of the enthusiasm and zeal that I used to see on the floor at Daihatsu plants in Japan. Naturally, there are differences in work style and lifestyle rhythms with so many different people hailing from different cultures, but properly understanding and respecting those differences in each other will establish a better foundation for frontline workplaces.

The New Karawang Plant Represents Locally-driven Operations

H.Y：
The construction of the new Karawang vehicle plant, which began operations in December 2024, was not simply a plant renovation or upgrade. It was a major turning point that drastically boosted the competitive strength of ADM as a whole. The aim in launching the plant was to transform it into an entirely new manufacturing system capable of more efficient, higher quality production by incorporating feedback from locals and actively integrating new technologies and construction methods from Japan (upgrades to the Kyoto (Oyamazaki) Plant). In addition to future growth in the Indonesian market, we were aiming to build a plant that supported the goal of “being chosen for product quality with competitive costs,” with a watchful eye on competitors entering the market from China, South Korea, and Southeast Asia. We considered sustainability when building the plant while also incorporating other factors such as productivity and flexibility.

M.H：
Once again, I was stunned by the growth I saw in local personnel during the launch of the new plant. They uncovered issues in various operational aspects of the plant and took the initiative to make improvements. They have grown impressively into that level of independence and autonomy. This did not happen overnight. It’s thanks to many years of efforts on the part of Japanese personnel assigned to Indonesia, and the fact that local personnel were welcomed to Japan to learn through actual projects how the work is done in Japan.

K.N：
I was assigned to another post at ADM over a decade ago, and the company has improved tremendously since that era. At the time, we needed to explain everything step by step, but that is no longer the case. These days, before we can even ask for a status update on something, the staff often tell us they have already taken care of it. They have developed the ability to take action that anticipates the future, and I believe that this growth among local personnel represents growth for ADM as a company.

From Indonesia’s ADM to the World

H.Y：
Although the new plant began operating according to plan, it is still not at full capacity due to worsening market conditions. We certainly cannot be optimistic about the current market environment. As such, we are considering a plan of consolidating all ADM passenger vehicle production at the Karawang Plant to fully utilize the new factory. More than just consolidating production sites, this represents a shift toward a more sustainable production system, and to that end, I hope to encourage local personnel to be even more independent in the future. We also plan to continue our ICT* personnel dispatching initiatives to Daihatsu and broaden their scope of dispatched sites to include the entire Toyota Group with the aim of further bolstering human resource development.

M.H：
There is still demand for gasoline-powered vehicles in Indonesia, especially in the rural areas. There is especially high demand for “small, reasonably priced, durable cars for the whole family.” Continuing to provide
these customers with reasonably priced, durable, longlived Daihatsu cars will help to enrich life in Indonesia. On the front lines, local personnel continue to become more independent and show great drive toward taking on new challenges. Moving forward, we will continue to strive to leverage Indonesia’s unique strengths, and I personally
will work to support these endeavors while ensuring we can generate new value at our overseas subsidiary.

K.N：
For production equipment, this plant emphasized collaboration with local manufacturers, instead of relying on procurement from Japan. This helped us to lower costs while also having tremendous ripple effects in the local
economy. I hope we can create a future in which the engineers here at ADM will, in turn, help out with launching plants in other emerging countries as well.

* Resident status granted to foreign nationals transferred from an overseas subsidiary of a Japanese company (investment ratio: 20% or more) to a Japanese company for the purpose of technical or international work