Volkswagen To Build First Assembly Plant In Indonesia
Published:02-July-2009
By Staff Reporter
Indonesia's blooming demand is keeping it attractive for foreign automotive companies
Volkswagen AG is planning to spend $140 million in the next two years, to build its first assembly plant in Indonesia, reported Bloomberg.
The German automaker earlier said that the planned facility, an hour east of Jakarta, would initially manufacture several hundred passenger cars starting this summer, with output being steadily increased thereafter.
The automaker would start assembling the Touran, a compact multipurpose vehicle, at the new facility. Muhammad Lutfi, Head of Indonesia's Investment Coordinating Board, said that manufacturing multi purpose vehicles in Indonesia is 30% cheaper than in other Southeast Asian nations because of government tax breaks.
Volkswagen said that it would use the Indonesian plant to export to countries in Southeast Asia.
