GM is considering boosting its assembly capacity in Indonesia amid plans to use the country as an Asian production base for one of its models according to a company official.

Dow Jones reported the local GM manager's remarks.

"GM is currently discussing the plan with related ministries," Mukiat Sutikno, managing director of PT General Motors Indonesia, told reporters on the sidelines of the launch a new car model.

The Indonesian unit of the US carmaker will decide before the year-end on which model to assemble in Indonesia, Sutikno reportedly said.

He said he couldn't give the estimated size of the investment as that will depend largely on the vehicle model that the company will assemble.

The company's assembly facility east of Jakarta can now produce only 20,000 units a year, the Dow Jones report said.

Sutikno said if all goes to plan, he expects the new production facility to start operations in early 2010.