Nissan is planning to strengthen its presence in Indonesia to support its program and make the country a major production hub for the Southeast Asian region.

“The company (Nissan) plans to invest $400 million in the next few years under expansion production capacity. Currently, the company has production plants in Purwakarta, West Java. And the company has plans to produce low-budget green cars and they are even ready to follow the strictures and specifications made by the government,” says M S Hidayat, Indonesian Industry Minister.

This year, sales continue to show positive progress. As of February, sales have hit 162,772 units, growing more than 13 percent compared to the same period last year. In 2011, domestic car sales in Indonesia hit an all-time high of 894,180 units, up by 19.93 percent from 2010, according to the Indonesian Automotive Industry Association.

In the previous week, several automakers such as Toyota Motor Corporation, Daihatsu Motor Company, Suzuki Motor Corp., Germany’s BMW and China’s Geely Automobile Holdings Ltd shown interest and commitment to start their new production plants in Indonesia as the government was keen to provide necessary elements for production. Even the US automaker General Motors (GM) made an announcement of its plans to produce 40,000 Chevrolet cars by early 2013 in Bekasi, West Java.

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