Japan's Mitsubishi to build new plant in Indonesia

JAKARTA, Indonesia (AP) — Mitsubishi Motors Corp. says it will build a new car factory in Indonesia as part of its plan to raise production capacity in Indonesia from 160,000 to 240,000 vehicles per year.

Chief Executive Osamu Masuko said Tuesday the Japanese automaker will invest $600 million in the assembly plant.

Construction is expected to begin in May next year in Bekasi, a West Java town just east of the capital Jakarta.

Masuko said the plant would begin production of multi-purpose vehicles in 2017. The vehicles are also known as people carriers because they comfortably transport more people than regular cars.

The Association of Indonesian Automotive Manufacturers expects Indonesia's car sales to increase by 10 percent this year to 1.3 million vehicles, helped by sales of low cost green cars.