"I have had a talk with them (Volkswagen) about their plan. They already have a blueprint on the project," said Hidayat after attending the ASEAN-UE business summit at the Jakarta Convention Center (JCC) here on Thursday.
Volkswagen had been exploring the possibility of setting up a production facility in Indonesia for the past three years and now it was hoping to realize it later this year, Hidayat said.
Volkswagen`s intention to expand its business in Indonesia was in line with the European country`s plan to increase its investment in Indonesia, especially in the automotive sector which had huge market potential.
Hidayat, however, did not mention the amount Volkswagen would invest in Indonesia.
The minister said the German auto maker`s plan to set up shop in Indonesia was in line with the exhaust emission standards campaign in 2012 towards Euro-3.
"This is good news for the domestic automotive industry because the European automotive industry has no base yet in Indonesia where the market is so far dominated by Japanese and Korean brands," Hidayat said.
According to earlier reports, the investment value of the would be Volkswagen factory in Indonesia was about 35 million euro and it was expected to absorb 2,000 to 4,000 workers.
The ASEAN summit is scheduled to take place at the Jakarta Convention Center on May 7-8, 2011. (*)
Editor: Kunto Wibisono
Copyright © ANTARA 2011
