KARAWANG (Yosefardi) – PT Astra Honda Motor (AHM) plans to invest Rp3.3 trillion in new factory for increasing production capacity of motorcycles in Indonesia.

Toshiyuki Inuma, AHM’s president director, said PT Astra International Indonesia Tbk (ASII) partners with Honda Motor Co for the project with ownership of 50% each.

This new factory is the fourth factory, located in Indotaisei Industrial Estate, Kota Bukit Indah, Kerawang, West Java. Other existing factories are located in Sunter, Pegangsaan and Cikarang.

The fourth factory will have production capacity of 1.1 million units per year and will employ more than 3,000 workers. This new factory will boost AHM’s production capacity to total 5.3 million units per year.

National motorcycle production is expected to reach 7 million tons this year.