FRANKFURT (AP) -- German carmaker Volkswagen AG says it had signed an agreement to set up an assembly plant in Jakarta with Indonesian partner Indomobil.
Wolfsburg-based Volkswagen says local vehicle assembly operations are to be set up and started this year as a first step toward the long-term development of local markets.
VW says initial production of several hundred Touran minivans starting this summer will gradually be increased and could include other vehicles.
VW says the plans see expanding market share in the region beyond Indonesia and broadening the product offering to include other VW brands like Skoda, Audi and Volkswagen commercial vehicles.
Shares of VW were down about 1.2 percent at euro231.11 in Frankfurt morning trading Monday.