The 27-acre (11-hectare) plant will begin production of a new line of vehicles for Southeast Asia in 2013 and has an initial capacity of up to 40,000 units per year.
"This is one of the most significant undertakings we have made in the region," Martin Apfel, president of GM Southeast Asia, said in a statement.
"The decision to reopen our Bekasi plant is an extension of GM's commitment to maintain a strong manufacturing base in Indonesia and Southeast Asia for the production of world-class products that consumers will aspire to buy."
GM said the Bekasi plant, along with plants in Thailand and Vietnam, is part of a regional growth strategy that includes leveraging the local supply base and expanding its dealer network.
GM's sales in Indonesia rose 72 per cent to 4,500 units last year and were up another 18 per cent on an annual basis to 2,500 units in the first half of 2011.