Volkswagen Group is expected to announce a EUR200m (us$268.5m) investment to build a car plant in Indonesia, according to a government minister.

Industry minister Mohamad Hidayat told reporters that the carmaker will build the factory in Cikampek, West Java. He added: “They [VW] will announce the plan in November or December."

Volkswagen is keen to expand its small presence in South East Asian markets as it strives to become the best-selling global automaker.

VW has said it wants to sell 10m cars a year by 2018, up from just over 9m last year.