| Jakarta, Indonesia, January
18, 2002 --- Honda Motor Co., Ltd. announced today that PT Honda Prospect Motor,
its authorized manufacturer and distributor of automobiles in Indonesia, has begun
construction of a new, state-of-the-art automobile manufacturing plant at Karawang.
Scheduled to come on-line in April 2003, the new plant represents an investment of some US$ 30 million and will have a
production capacity of 40,000 automobiles per year.
At a press conference to announce the start of construction, Honda President and CEO Hiroyuki Yoshino said this
new investment marks a major commitment by Honda and its Indonesian joint-venture partners to the future of
Indonesia's automobile industry, based on their confidence in the long-term growth potential of the Indonesian economy and
projected local market demand for Honda automobiles.
"When it starts operations next year," said CEO Yoshino,
"the new Karawang factory will take over the production of all Honda automobiles in Indonesia,
including the Stream, the launch of which was announced yesterday."
He added that the new facility also would enhance Honda's export capabilities from Indonesia to the rest of the ASEAN market.
The Karawang factory will employ Honda's latest flexible manufacturing systems, and expand the local content of Honda automobiles,
also enabling Honda to offer its growing customer base, both in Indonesia and throughout ASEAN, even more competitively priced,