JAKARTA: Honda Motor, through its Indonesian partner PT Honda Prospect Motor, is set to build two new plants here, pending a final approval from the headquarters in Japan.The expansion plan was communicated to the Directorate General of High Technology Industries, Industry Minister M.S. Hidayat said Monday night.For every automotive investment plan, the government requires foreign car manufacturers to provide ample opportunities to the local supporting industries to do business with them.The foreign companies will select local companies that qualify to be among the supporting partners in the expansion project, he said.On another development, India-based Tata Motors is selecting several locations in West Java and Banten for its new plant in Indonesia. It will do local market surveys to decide which model it should focus on making in the would-be built Indonesian plant.In addition, the government has regulated to grant incentives for Tata Motors, including income tax for total investment, sales tax on luxury goods (PPnBM), and import duty will waived (BMDTP) for component materials.If the plan moves ahead, this would be the first time for Tata to construct a car plant in Indonesia.Pending headquarters' approvalThe management of PT Honda Prospect Motor, a sole agent of Honda brand-holder in Indonesia, said that Honda Japan is yet to approve the plan to build plants in Indonesia.Automotive industry in Indonesia is viewed as a potential market that attracts great interests from the world's automotive manufacturers including Honda, said HPM Director of Marketing and After-Sales Service Jonfis Fandy.Currently, Honda operates its new plants that make three variants of cars, namely Jazz, CR-V, and Freed in Karawang, West Java. (t01/msw)

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