General Motors confirmed it would restart production at its assembly plant in Bekasi, some 50km east of Indonesia’s capital Jakarta, in early 2013.
The company plans to spend US$150m modernising and expanding the plant, to produce a new compact MPV to be sourced from its GMDAT subsidiary in South Korea.
Capacity at the plant, which ceased production in 2005, will be increased to 40,000 units per year and employ 800 people.
Martin Apfel, president of GM’s Southeast Asia operations, said the plant would produce vehicles for export to other markets in the region. Local content will exceed 40%, which will give the vehicles duty-free access to the main markets in the ASEAN trade block.