Proton Explores Vehicle Development, Manufacturing Partnership in Indonesia

The Malaysian Automotive Institute says an agreement to explore Malaysian vehicle production in Indonesia could be a regional game-changer in Southeast Asia if it happens.

Malaysian automaker Proton signed a non-binding memorandum of understanding with privately held PT. Adiperkasa Citra Lestari to establish ties for the development and manufacture of an Indonesia national car.

A feasibility study will examine possible contributions and how to maximize benefits to both countries in developing and manufacturing cars in Indonesia.

It’s a move MAI CEO Madani Sahari says is a positive initiative toward extending Proton’s automotive manufacturing outside Malaysia.

“Indeed, this is a very interesting proposal that will suit well with the spirit of ASEAN Economic Community, which will materialize on Dec. 31 this year,” Madani says in a statement. If implemented, the plan “may lead to a significant change in the ASEAN automotive landscape in the near future.”

Proton CEO Harith Abdullah says the feasibility study will explore potential vehicle development and manufacturing in Indonesia.

“The collaboration will be good as both nations specifically work together to develop products for the larger market,” Harith says in a statement.

“Proton, which has the facilities, capabilities and technology know-how in design, development and manufacturing of cars, is the only company in the ASEAN region with a research and development facility in-house.”

Harith says no other countries in the region have their own national car project.

As the region's major player in the automotive market, Proton says closer ties with PT. ACL would facilitate international and regional investments, spurring more automotive markets activity and economic development.

The feasibility study will cover the automotive operations and business, including the commercial and technical aspects of the project. The companies also will evaluate and work together to develop plans on localization activities, purchasing, engineering and design, logistic services, market studies and other processes relating to the project.

The MAI’s Madani says the MoU is a positive initiative toward extending Proton’s automotive manufacturing outside Malaysia.

“Proton with its number of vehicle platforms can expedite the introduction of models into the Indonesia market in the shortest time possible,” Madani says. “Joint vehicle design and development to suit the Indonesian market will reduce the assembly times and ease production.”