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Volkswagen may build factory in Indonesia

22 May 2007, JAKARTA - A delegation of auto giant Volkswagen held a meeting with Minister of Industry Fahmi Idris for talks on the possibility of opening an assembly plant in Jakarta, as was reported by local press earlier today. Director General of Transportation Industry Budhi Dharmadi confirmed the meeting, telling that Volkswagen was assessing possibilities of opening a new plant in Asia outside China, which it's largest production base in the continent.

"It's possible that they invest here. But the meeting represents just a preliminary assessment," said Budhi, but he didn't elaborate when the meeting was held and who was attending it. A possible Volkswagen plant in Indonesia will probably boost the country's automotive industry which is currently dominated by Japanese manufacturers. China's Chery Automobile and Geely International are present in the Indonesian market by selling city cars and sedans while Bajaj from India and TVS have arrived to grab some market share in the motorcycle market, which is currently also controlled by Japanese manufacturers.