Nissan is said to invest US$20m in its Indonesian assembly plant to double production capacity for the growing local market.
Chief executive Carlos Ghosn said Nissan was targeting more than 10% growth in southeast Asia’s biggest economy in 2013, comparing it to rapidly growing emerging economies such as Brazil and Russia.
He told reporters in Jakarta: “We’ll start the expansion this year to boost production capacity to 100,000 cars from 50,000 currently. Today we have about 5% market share. This is far below our potential.”
Nissan plans to produce 100,000 cars at its Indonesian plant in 2013 and lift its market share to above 10%. Ghosn added Nissan would also almost double its Indonesian sales outlets to more than 80.
Indonesia is seeking billions of dollars in foreign investment to help it achieve targets of 7% growth by 2014. However. It is being held back by persistent corruption, legal uncertainty, red tape and a lack of adequate basic infrastructure.
Ghosn said: “Indonesia can become an export force on the condition that the country improves its infrastructure but most of the capacity that we will be building is mainly for Indonesian needs.”