REPUBLIKA.CO.ID, JAKARTA -- Industry Minister Saleh Husin inaugurated the first groundbreaking of the construction of PT Mitsubishi Motors Krama Yudha Indonesia that will manufacture passenger transport vehicles in Indonesia.

"The factory will have a significant impact on the Indonesian economy in terms of providing job opportunities and tax revenues, which will help in the nation's development," the minister claimed here on Tuesday.

The factory, which will commence operations in early 2017, will be constructed on a 51-hectare plot of land at Greenland International Industrial Center (GIIC), Cikarang, Bekasi.

The factory, with an investment of Rp6 trillion or about US$463.2 million, will have the capacity to produce 160 thousand units per year.

The factory will provide jobs to three thousand people.

According to the plan, 25 percent or 20 thousand units per year of the total production of 80 thousand units per year will be exported to Thailand and the Philippines, and hence, it will increase foreign exchange earnings for Indonesia.

The minister noted that Mitsubishi has even committed to export up to 30 percent of the total vehicles produced in the first stage after the factory commences operations.

The construction of the factory for exports is in line with the government's mission to encourage exports, which can also reduce the trade deficit due to the high value of imports of vehicles and components.

"I urge that these efforts should be continued and intensified, so that it could serve as a model for other brands to produce vehicles for the global market," Saleh emphasized.

The minister hoped that PT Krama Yudha Mitsubishi Motors Indonesia will continue to increase the utilization of locally manufactured products and engineering services in its production activities to increase the domestic content in its products.

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