- M.S. Hidayat, Indonesian Minister of Industry
- Budi Darmadi, Indonesian Directorate General of Industry
- Hiroshi Kobayashi, Managing Officer, Honda Motor Co., Ltd. Chief Operating Officer, Regional Operations (Asia & Oceania) Honda Motor Co., Ltd. dan President and CEO Asian Honda Motor Co., Ltd.
- Yoshiyuki Matsumoto, Operating Officer Honda Motor Co., Ltd., Executive in Charge of Business Unit No.3, Automobile Operations Honda Motor Co., Ltd.
- Tomoki Uchida, President Director PT Honda Prospect Motor
- Kusnadi Budiman, Senior Vice President PT Honda Prospect Motor
- PT Honda Prospect Motor Board of Directors
The new factory will increase the annual production capacity from 60,000 units to 180,000 units per year with a total investment of 3.1 trillion yen (approximately ¥ 27 M / USD 329 million).
Honda Prospect Motor existing factory is located in the Kawasan Industrti Mitrakarawang, Parungmulya Village, West Java, with a total area 512 500 m2 and building area of 97,575.79 m2. The factory has production capacity of 60,000 units per year and has been producing Honda main models in Indonesia such as Honda Jazz, Honda CR-V and Honda Freed. The factory supported by production facilities such as Stamping, Press, Welding, Painting, Assembling, Vehicle Quality, Road Test, Car Pool, and Engine Plant. Honda plant currently employs approximately 3,600 people. In addition to producing domestic market needs, the factory has also been exporting various auto parts like Engine parts: Cylinder Head, Cylinder Block and Body Parts: Hood Comp, Panel Inside RR, R / L Inside, Skin Hood, Hood Frame, and completely built up product which is Honda Freed to various countries.
The new plant which will be built this year is located directly behind the existing plant and will have a total building area by 95,000 m2. The new plant will have production capacity of 120,000 units per year, which would increase the overall production capacity of Honda in Indonesia to 180,000 units of cars per year. This plant would also absorb approximately 2,000 to 5,000 new workers.
This new plant will produce new models of Honda in the future, starting with Honda Brio. Brio production at the new plant will also increases local component up to more than 80%.
Hiroshi Kobayashi said, "Indonesia holds a very important position for Honda global business because it is the largest automotive market in Southeast Asia. Therefore, Honda will make Indonesia as one of the main factories in addition to Thailand and India, in which we will not only producing cars for the domestic market, but also to be exported to various countries in Asia-Oceania region."
"Furthermore, to support business development in Indonesia, Honda will also introduce various models which fit the needs of consumers in Indonesia, started from Honda Brio, and also expand our dealer network across Indonesia. We hope this plan will not only bring a positive impact for Honda business in Indonesia, but also for the whole automotive industry in Indonesia."
Currently Honda is supported by 88 dealers throughout Indonesia. Along with the addition of production capacity, Honda plans to open as many as 62 new dealers to reach a total of 150 dealerships by the end of 2014.
Meanwhile, Tomoki Uchida, President Director of PT HPM, said that Honda factory expansion was done along with the rapid growing of automotive market in the country and to meet the increasing demand of Honda products by Indonesian customers.
"Although Honda can not show that optimal performance on last year due to shortage of components supply, we believe that consumer confidence in Honda products and consumer demand which remains high, supported by the positive macro economiy indicators in this year with a prediction market total 950 000 units in 2012, will support our target to achieve sales of 70,000 units in 2012. We are also grateful that the target was supported by Honda principal in Japan, which has been confirmed to introduce new models of the Honda Brio to consumers in Indonesia," Uchida said.
"In a larger scale," he added, "we also hope that the expansion of this plant will also be a very positive signal about safe investment climate in Indonesia, supports economic growth in the automotive industry and Indonesia in general, and create wider to working opportunity for society in Indonesia."