PT Astra Honda Builds Third Factory
September 10, 2004
Filed under Features
PT Astra Honda Motor Inc., Honda’s joint venture company in Indonesia responsible for motorcycle production and sales, announced construction of its third manufacturing plant.
The motorcycle market in Indonesia, the third largest in the world, expanded to 3.1 million units in 2003, a 22% increase from 2002. Honda’s new plant – located in Bekasi, 20 miles southeast of Jakarta – is a response to this market growth. Total investment in the plant is expected to be approximately US$100 million. It is expected to become operational in October 2005 with an annual capacity of approximately one million units.
Honda began production of motorcycles in Indonesia in 1971 with a technical partnership with PT Federal Motor. In 2000, PT Astra Honda Motor Inc., a 50/50 joint venture between PT Astra International and Honda, was established to pursue production of motorcycle parts, motorcycle engine and chassis assembly, and sales. In 2003, PT Astra Honda Motor became Honda’s first overseas operation to achieve cumulative motorcycle production of 10 million units.
Honda Motor Co., Ltd. has more than 120 manufacturing facilities in 30 countries worldwide. Established in December 2000, PT Astra Honda Motor is active in motorcycle parts production, motorcycle engine and chassis assembly, and motorcycle sales. The JV currently employs 9,000 people and produces four models, the Karisma-X (125cc), Supra Fit (100cc), Mega Pro (150cc), Tiger2000 (200cc).