Carlos Ghosn, CEO of Nissan, expects the Indonesian economy to grow by 10% by 2013, comparing our ASEAN neighbour to the likes of Russia and Brazil. The Japanese automaker plans to ride the boom, and is said to have invested $20 million in its Indonesian assembly plant to double production for the market.

“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,” Ghosn said in Jakarta. The charismatic Renault-Nissan boss also revealed that Nissan will double its number of sales outlets in the country to more than 80.

Indonesia is currently seeking billions in foreign investment to help it achieve 7% growth by 2014, but is being held back by various red tape issues and lack of adequate basic infrastructure. “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,” Ghosn said.

Current models available in Indonesia include the X-Trail, Grand Livina, Frontier, Serena and the Teana. In November the Japanese company will be launching the Nissan March which will be a competitor to the Honda Jazz and Toyota Yaris.

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