Jakarta (ANTARA News) - PT Astra Honda Motor is ready to increase its production capacity of its plant in Cikarang, Bekasi, to anticipate increasing demand for motorcycles.
"It will not be done now but we are ready to increase the capacity because expansion is still possible to be done at the plant compound in Cikarang," the company`s president director Miki Yamamoto said to ANTARA last weekend.
Its third plant in Cikarang, Bekasi, West Java, which was inaugurated by President Susilo Bambang Yudhoyono in September 2005 sits on a 30-hectare land and has drawn an investment of around US$140 million.
Yamamoto said the use of the plant compound could still be optimized to increase the plant`s production capacity if the motor cycle market in the country continued to rise.
He predicted the motorcyle market in Indonesia would grow by 10 to 20 percent this year compared to around 4.4 million units last year.
"The 10 percent growth is a conventional figure but a 20 percent growth may occur if economic and political stability in Indonesia continues to improve. Strong demand for motorcyles in Indonesia may still continue as there is still room for it," he said.
The motorcyle demand in the country could still grow higher than 10 percent in view of the country`s increasing population, he said.
He said Astra Honda Motor would continue to increase its investment in the country especially for providing components of new models currently being developed.
Yamamoto said the capacity of Astra Honda Motor at present was around three million units a year which could still meet the market demand in short term.
In 2007 the company, according to marketing director Johannes Loman, expects to control 50 percent of the national motorcycle market which is projected to reach 4.6 million to 5.0 million units.
In view of that the company`s production this year is expected to reach between 2.4 milion and 2.5 million units which are still below the company`s installed capacity of three million units a year.
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