The New Infusion Of Indonesian Automotive Industry

The New Infusion Of Indonesian Automotive Industry

By: Arifin *)

In Proton Office, Kuala Lumpur, Malaysia, Friday, February 6th, 2015 pm local time, car manufacturers of malaysia, Proton Holdings Bhd, signed a memorandum of understanding (MoU) with the Indonesian company, PT Adiperkasa Citra Lestari, related Indonesia’s national car project.

Also present at the signing ceremony,  Malaysian Prime Minister Najib Razak, President Joko Widodo, and Chairman of Proton Mahathir Mohamad. Similarly, as quoted from The Star.

That MoU was signed coincide with state visit by president Jokowi to Malaysia.

As depicted from KompasAutomotive, car manufacturers of malaysia, Proton signed this Mou with PT Adiperkasa Citra Lestari because want to help Indonesia learn how to build, develop, and produce a national car.

Proton said in a statement that the two companies will conduct a feasibility study and undergo cooperation in the national car project in IndonesiaProton said in a statement that the two companies will conduct a feasibility study and undergo cooperation in the national car project in Indonesia.

If the study shows the project is feasible, the company will sign a joint venture agreement, as reported by the Associated Press (AP) and quoted by ABC News, Friday. Further, Chairman of Proton Mahathir Mohamad which also as former Malaysian Prime Minister said , that the study will be completed within six month later.

He said that there is a big potential market for Indonesian car, sales figures reached one million units last year and potentially reach 4 million units in the long term.

“We’re interested in creating a joint venture and produce cars of ASEAN”, he said. Lately, this MOU get the spotlight of many people in the country, trigger the industry minister, Saleh Husin spoke.

In his statement, as reported by Tribunnews.com Saleh Husin said the signing of the MoU between PT Adiperkasa Citra Lestari with Malaysian automotive company, Proton Holdings Berhad wasn’t an effort to create a national car.

According to him , the signing of the MoU was pure of business to business and to make a feasibility study for the 6 months later. “So once again it was purely private to private, ” he emphasized.

National car term has expired in Indonesia after World Trade Organization (WTO) prohibits it since 1998, his continue.

Trade Minister Rachmat Gobel, asserted that Proton investment planting in Indonesia is common, same as other car manufacturers who invest in Indonesia.

One thing to keep in mind that it is not easy for a new automotive company to compete in Indonesia, because still there are car manufactur from Japan and South Korea who the first invest in Indonesia.

*) The Author Is Jakarta Regional Contributors

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