Vigorous Demand in Indonesia Leads Honda to Build New Motorcycle Plant

The facility will produce 1.1 million bikes a year and employ 3000.

Japan's third-largest automaker Honda Motor said on March 13 that it will build a new motorcycle factory in Indonesia.

The plant will produce about 1.1 million bikes a year. Honda said the new factory, scheduled to open next year, was necessary "in order to satisfy the vigorous demand" in Indonesia.

Operated by Honda's local joint venture partner PT Astra Honda Motor, the factory will cost about 3.13 trillion Indonesian rupiah (US$341 million) and add 3,000 new jobs.

Designed to meet growing demand, the facility at an industrial park 43 miles east of Jakarta is the fourth operated by Honda's Indonesian partner, the automaker said.

It will bring the joint venture's operating capacity to 5.3 million units annually.

"The motorcycle market of Indonesia is the world's third-biggest next to China and India, and the further expanding demand is expected on the back of the steady economic basis in recent years," Honda said.

Copyright Agence France-Presse, 2012

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