Following on Daihatsu’s plans to make Indonesia a base for its business expansion, the automaker has announced that it will establish a research and development centre on the site of its new plant being built in the country.

The Nikkei again reports that the R&D facility will be set up after the factory is ready for operation at the end of next year. Daihatsu says it will gradually transfer over from Japan certain design functions for new vehicles as well as redesigned models produced locally. Some of the subsidiary’s 70 developers have begun training in Japan ahead of this.

Local subsidiary PT Astra Daihatsu Motor has just begun work on the plant, located on the outskirts of Jakarta on an 800,000 sq. m site. The plant will have an output capacity of 100,000 units a year, and is slated to build small cars for the local market as well as for export. It will also contain a test course.

No surprise that Daihatsu is focusing very much on Indonesia – the country is now the automaker’s largest overseas manufacturing base, and its annual production capacity has bumped up to 330,000 units this month in the country, up from 280,000.