French leading automaker Renault SA is ready to materialize investment of 600 million U.S. dollars in a new factory in Indonesia, an official has said.

Muhammad Lutfi, head of the Indonesian Investment Coordinating Board (BKPM), was quoted Friday as saying the factory would likely occupy a space in the Central Java town of Kendal, some 500 km east of Jakarta.

The Indonesian plant will produce up to 75,000 cars of 1.6-liter capacity a year, he told leading economic daily Bisnis Indonesia.

The production capacity would be increased to 150,000 units a year when the Indonesian plant begins to supply for export sales.