According to a minister, Nissan-Renault is planning to put in 400 million U.S. dollars in the Indonesian assembly plant in order to increase the production capacity. Nissan-Renault was the result of a strategic partnership between the Japanese car maker Nissan and the French Renault in 1999.
As per M S Hidayat, Industry Minister, a meeting between Susilo Bambang Yudhoyono, President of Indonesia, and Carlos Ghosn, Chairman of Nissan-Renault was held to talk about the firm’s objectives. After the meeting was over, the minister said “They planned to invest in Cikampek (West Java) with an investment value of $400 million, higher from its initial plan of $100 million.” He also added that the firm wishes to boost the production capacity to 250,000 units annually from the original capacity of 100,000 units by the year 2014.
Nissan-Renault officials, however, did not comment on anything after the meeting ended. The company officials will most likely give all the details regarding the investment in the next few days in a press conference.
Indonesia, the largest economy in Southeast Asia, in order to accomplish its aim of 7 per cent growth by the year 2012, seeks foreign investment of billions of dollars. The country’s target by 2025 is to gain private investment of about 465 billion U.S. dollars.
