Nissan-Renault aims at boosting production capacity by investing $400 million in its Indonesian assembly plant.
Recently Indonesia’s President Susilo Bambang Yudhoyono met with Nissan-Renault chairman Carlos Ghosn in the capital Jakarta and discussed the company’s intentions.
“They planned to invest in Cikampek (West Java) with an investment value of $400 million, higher from its initial plan of $100 million. They want to increase production capacity from 100,000 vehicles per year to 250,000 vehicles by 2014,” the minister told reporters after the meeting.
Indonesia, which is the largest economy in Southeast Asia, seeks investments of billions of dollars in order to accomplish its aim of 7% growth by the end of this year. The country also plans to gain private investment of about $465 billion by 2015.
With extra investment in Indonesia, Japanese carmaker Nissan Motor aims to more than triple its auto sales in Southeast Asia’s largest economy within four year amid forecasts of turbocharges industry-wide sales growth. Nissan is the latest Japanese carmaker announcing additional investment in Indonesia.
“No matter what happens in the short term, in the larger picture, Indonesia is a very dynamic car market, and we are intending to participate in it,” Carlos Ghosn, president and chief executive of Nissan said.