Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >>   Automotive  >>   VW to build factory in Indonesia
NEWS UPDATES Asean Affairs        6  May 2011

VW to build factory in Indonesia

Related Stories

March 1, 2011
GM expects Indonesian sales to jump

December 21, 2010
GM relocates marketing to Indonesia

October 27, 2010
Indo car sales outstrip road capacity

April 1, 2010
Indonesia’s car output seen rising 51% this year

March 29, 2010
Indonesian car exports rebound to pre-crisis level

March 23, 2010
Dealers worry Thai unrest may affect car exports to Indonesia

Volkswagen, Europe's biggest automaker, plans to build a factory in Indonesia by the end of this year at the latest, Industry Minister M.S. Hidayat said.

"I had a talk with them [Volkswagen] about their plan. They already have a blueprint for the project," Hidayat said after attending the Asean-European Union business summit at the Jakarta Convention Center on Thursday.

Volkswagen has explored the possibility of setting up a production facility in Indonesia for the past three years, and the minister said it now hoped to realize those plans later this year. However, he did not reveal how much investment Volkswagen planned to put into Indonesia.

Muhammad Lutfi, the previous chief of Indonesia's Investment Coordinating Board (BKPM), was quoted by Bloomberg as saying Volkswagen planned to spend US $140 million to build its first factory in Indonesia. The plan was to build a factory that could produce 50,000 Touran multipurpose vehicles per year, but the plan has laid dormant since.

"This is good news for the domestic automotive industry because the European automotive industry has no base yet in Indonesia, where the market has so far been dominated by Japanese and Korean brands," Hidayat said.

Volkswagen's intention to expand its business in Indonesia was in line with Germany's plan to increase its investment in the country, especially in the automotive sector, which is believed to possess huge potential.

Germany's foreign direct investment in Indonesia was $157.6 million in 2010, representing 5.6 percent of the European Union's $2.78 billion in total investment in Indonesia last year.

Local media reports quoted Julian Wilson, the European Union ambassador to Indonesia and Brunei, as saying in March that there were 700 European companies investing in Indonesia. Their investment represents 1.6 percent of the total EU Investment in Asia.

Indonesia, the chair of Asean, hosted the business conference ahead of the 18th Asean Summit, which is scheduled to take place this weekend, also at the Jakarta Convention Center.

The business summit hosted by Indonesia, the Asean Chair this year, was held ahead of this weekend's 18th Asean-EU Summit. Hundreds of top company executives from both economies, economic ministers and Karel de Gucht, the EU commissioner for trade, are expected to take part in the summit.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    6  May 2011 Subsribe Now !
  • Asean deals with Myanmar issue Subcribe: Asean Affairs Global Magazine
• VW to build factory in Indonesia Asean Affairs Premium
• Indonesia looks at sale of islands
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Tycoon to list shipping company        
• Moro rebels threaten to end talks

• Thai mutual funds get good grades

• Thai beverage producer turns to nano

• Vietnam signs infrastructure deal p

Asean Analysis    May 2011

Advertise Your Brand
• Myanmar again troubles Asean Sponsor Our Events

Asean Stock Watch    May 2011

• Asean Stock Watch-May 6 p

Global News Impacting Asia    17 November 2010


• Bank of America sees Asian inflation


• Lloyd’s increases insurance push in Malaysia


• Wells Fargo analyst on euro


• Obama’s visit to Asia


ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2021 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand