Honda Relocates Factory From India To Indonesia, Increases Investment Of IDR 5.2 Trillion

Minister of Industry, Agus Gumiwang Kartasasmita. (Photo: Doc. Ministry of Industry)

JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said the Japanese Honda Motor Company would commit to increase its investment in Indonesia by IDR 5.2 trillion and would relocate its factory in India to Indonesia.

This was conveyed by Minister of Industry Agus Gumiwang after holding a meeting with Honda by implementing a very strict health protocol in Tokyo, Japan.

"Honda has committed to increase investment up to 2024 of around Rp. 5.2 trillion. This is included in the development of new models to be developed in Indonesia. We will continue to encourage expansion activities in Indonesia," said the Minister of Industry when holding a virtual press conference of Japan quoted from Antara, Thursday, March 11.

The Minister of Industry explained that Honda had been exporting a very large number of automotive components from Indonesia. It is part of the global supply chain for global automotive products, which are exported from Indonesia to Thailand, Pakistan, India, Saudi Arabia and several other countries, for a total of nine countries.

In addition, Honda also exports Completely Built Up (CBU) vehicles to two countries, namely the Philippines and Vietnam. In a meeting with the Minister of Industry, Honda is also committed to increasing the number of export destination countries to 31 countries in Asia, Africa, North America, Central America and South America.

"This new model which will be exported to 31 countries is only produced in Indonesia," said the Minister of Industry.

It is known that the Minister of Industry visited Japan for two days, on March 10-11, 2021 to fulfill an invitation from the main players in the automotive industry who have also been operating in Indonesia.

Apart from Honda, the Minister of Industry also met with major players in the automotive industry, Toyota, Mitsubishi, Suzuki and Mazda. The main purpose of the Minister of Industry's working visit this time is to attract additional investment in the automotive sector.