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apanese carmaker Nissan Motor Co., Ltd. affirmed Wednesday its commitment to Indonesia by announcing its plan to double production at its Cikampek, West Java, plant from 50,000 cars per year by the end of this year with an investment of US$20 million.

Nissan chief operating officer Toshiyuki Shiga told The Jakarta Post and other media in a series of limited interviews that Nissan viewed Indonesia as a strategic market for two reasons.

“The Indonesian GDP is increasing allowing more people to buy cars and at the same time more cars are available at cheaper prices,” he said.

Shiga, who volunteered for an Indonesian post from 1991 to 1997, expected more production would drive more sales, which in turn would call for more investment in the country. “Nissan is ready to invest more. We have the ambitions to have a bigger presence in Indonesia.

Nissan through its subsidiary PT Nissan Motor Indonesia (NMI) reached for the first time a sales figure of 42,000 cars in fiscal year 2010 compared to 25,700 cars in the year ended March 31, 2010.

Production also increased to 41,999 cars in fiscal year 2010 from 24,500 in the previous fiscal year.

Appreciating such potentials, NMI started in April a research and development unit at its Cikampek plant for improved market research, planning, vehicle assessment and quality control activities.

“We want to utilize more Indonesian parts and support local suppliers to increase quality,” Shiga said.

“More localization will give more added value to Indonesia rather just importing the parts and components form Japan or ASEAN.”

He emphasized the R&D unit would not suddenly be able to produce a concept or new car.

“But we can react quickly to customer complaints on quality issues and provide countermeasures and provide feedback to Japan,” he said.

Later in the day, Shiga launched the Nissan Juke compact crossover, dubbed the combination of an SUV toughness with sporting style.

The locally produced Juke is offered in two variants priced at Rp 238.8 million and Rp 248.8 million.

With a market share of 5.3 percent in fiscal year 2010, Nissan is aiming at 7.6 percent or 60,000 cars in fiscal year 2011 and 10 percent with 90,000 cars by 2013. Nissan also aimed to be the Top 3 brand in fiscal year 2013.

The Association of Indonesian Automotive Manufacturers has forecast the number of sales would pass 800,00 cars this year.

Daihatsu, Toyota and BMW have announced their plans to increase production in Indonesia.