P.T. Honda Prospect Motor (HPM), Honda's automobile manufacturing and sales joint venture in Indonesia, has announced that it has started the construction of its new automobile production plant in Karawang Industrial Park in Jakarta.
The new plant, which will have an annual production capacity of 120,000 units, is scheduled to begin production in 2014 in order to continue meeting demand from the rapidly growing automobile market in Indonesia. Combined with the current production capacity of 60,000 units, the company will have a total capacity of 180,000 units.
The investment in the new plant amounts to approximately IDR 3.1 trillion ($327 million). Honda CEO Takanobu Ito said that Indonesia became the largest automobile market among ASEAN countries in 2011.