From Government of Indonesia

Honda May Boost Investment

Japan's No. 2 carmaker, Honda Motor Co, may boost investment in Indonesia. The world's second biggest carmaker by market value after Toyota Motor Corp, has so far invested $70 million in its Indonesian unit, but may spend more given the country's huge market potential, a senior executive for its Asian operations told Reuters on Wednesday (31/1/07).

"Honda has always set up production facilities where the demand is available. With a population three times that of Thailand, there's a possibility to enlarge the investment in Indonesia," Motohide Sudo, executive vice president at Asian Honda Motor Co Ltd, said in an interview, without elaborating.

Honda's vehicle sales in Indonesia slumped 44% last year to 30,000 units, in line with an overall market that dropped from a record of more than 533,000 units in 2005, due to weak purchasing power and high interest rates. Honda was the fifth best-selling brand.
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