So says the Hawaii Tribune-Herald, at any rate.
This doesn’t necessarily mean any part of the story will take place in Hawaii, though; the opening scenes in Raiders of the Lost Ark (1981) were filmed in Hawaii, but took place in South America.
Interestingly, according to the same rumour mill which says that this film will concern aliens and Chariots of the Gods type stuff, this film — possibly titled Indiana Jones and the City of the Gods — may concern “crystal skulls” and “South American temples”.
Hmmmm.