Investment in Auto Sector Tipped to Surge
The government predicts the nation's automotive industry will boom this year and in 2008. In the first quarter of 2007, investment in the automotive sector has already reached $173 million, said Budi Dharmadi, Director General of Transport Equipment and Information Technology Industry, Antara reported on Wednesday (21/3/07).
A number of the world's leading automotive principals have shown strong interest in establishing their production bases in Indonesia, Dharmadi said. Hyundai has already built a new factory to produce trucks and buses with an investment of $23 million, he said.
Meanwhile, Renault plans to invest $80 million to produce passenger cars and multipurpose vehicles and Nissan is set to expand its production capacity with an additional investment of $70 million.
Dharmadi said the trend is expected to continue through 2008 as foreign firms see strong prospects for the country's economy.
Meanwhile Chinese auto maker Lifan is studying the possibility of building an assembling plant for its cars in Indonesia, Bisnis Indonesia reported.
Chery and Geely cars from China are already assembled in Indonesia, the newspaper quoted an official as saying.
The official said Lifan has studied the possibility of using the assembling plants of Bosowa, Timor or Texmaco.
The source said Lifan already secured a license and it is expected to make Indonesia as its production base for Asian, African and European markets.
A number of the world's leading automotive principals have shown strong interest in establishing their production bases in Indonesia, Dharmadi said. Hyundai has already built a new factory to produce trucks and buses with an investment of $23 million, he said.
Meanwhile, Renault plans to invest $80 million to produce passenger cars and multipurpose vehicles and Nissan is set to expand its production capacity with an additional investment of $70 million.
Dharmadi said the trend is expected to continue through 2008 as foreign firms see strong prospects for the country's economy.
Meanwhile Chinese auto maker Lifan is studying the possibility of building an assembling plant for its cars in Indonesia, Bisnis Indonesia reported.
Chery and Geely cars from China are already assembled in Indonesia, the newspaper quoted an official as saying.
The official said Lifan has studied the possibility of using the assembling plants of Bosowa, Timor or Texmaco.
The source said Lifan already secured a license and it is expected to make Indonesia as its production base for Asian, African and European markets.