Denso Corp. said Tuesday it will set up a factory in Indonesia to manufacture a range of auto parts, including engine control units and variable cam timing control systems, to satisfy growing demand by Japanese carmakers.

Investment in the 200,000-sq.-meter plant in Bekasi, West Java Province, will come to ¥9.4 billion, Denso said.

To be operated by subsidiary PT. Denso Indonesia, the plant is scheduled to kick off production in February 2014.

Denso expects to hire 1,300 workers for the plant, which will be the company's third production base in Indonesia.