It is reported that Japan's Honda Motor planned to invest around US$337 million to build a new car production plant in Indonesia.

The plant will begin its production in 2014 and is capable of producing 120,000 units of vehicles annually.

According to Honda Motor this week, its Indonesian joint venture will also build a new scooter factory.

It is expected to increase 25% of its capacity in the world's third biggest two wheeler market to 5.3 million motorcycles a year.