General Motors (GM) said it will invest $150 million to reactivate a plant in Indonesia to build a “people mover” van for Southeast Asia. GM intends to manufacture a “people mover” MPV in Indonesia with the goal to eventually make the country as an export hub. GM could announce its plans as soon as Friday to erect a plant near Jakarta that could manufacture around 50,000 vehicle units a year.
The factory will be turned into a major production base that allows cheap export of vehicles to other countries in Southeast Asia such as Vietnam, the Philippines and Malaysia. In addition, GM wants to enhance its presence in a market dominated by Japanese vehicle manufacturers. Malaysia could have been the a choice for GM but with so many uncertainties, Indonesia will soon be the next motoring hub after Thailand. GM left Indonesia in the mid-2000s when it closed a small assembly plant near Jakarta.
The Bekasi plant in West Java, Indonesia, will begin production in 2013 and build 40,000 vans/mpvs a year, ultimately creating more than 800 jobs. GM said the Indonesia plant will mean an expansion of its dealer network in the country. The Indonesian plant will be used – along with factories in Rayong, Thailand, and Hanoi to support growth in the region. Last year, GM’s sales in Indonesia rose 72 percent to 4,500 vehicles. They were up 18 percent in the first six months of 2011. GM left the Indonesian market in the mid-2000s when it closed a small assembly plant near Jakarta.
