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Volkswagen may build plant in Indonesia
www.chinaview.cn 2007-05-22 13:16:55
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    JAKARTA, May 22 (Xinhua) -- A delegation of German auto giant Volkswagen has met with Indonesian Industry Minister Fahmi Idris for talks on the possibility of opening an assembly plant here, local press said Tuesday.

    Industry Ministry's director general of transportation industry Budhi Dharmadi has confirmed the meeting, saying Volkswagen was assessing possibility of opening a new plant in Asia other than its largest production base of China, reported leading economic daily Bisnis Indonesia.

    "It's possible that they invest here. But it (the meeting) represents just a preliminary assessment," Budhi was quoted as saying, but he didn't elaborate when the meeting was held and attended by who.

    The possible Volkswagen plant in Indonesia will boost the country's auto industry now dominated by Japanese manufacturers.

    China's Chery Automobile and Geely International have made their presence here to sell city cars and sedans, while India's Bajaj and TVS have come to grab a share in the motorcycle markets also controlled by Japanese producers.

    According to the government data, foreign direct investment in the automotive sector amounted to 39 million U.S. dollars in the first quarter of the year.

    

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