Proton, PT Adiperkasa Citra Lestari to develop Indonesia national car

PETALING JAYA: DRB-Hicom Bhd's wholly-owned subsidiary Proton Holdings Bhd has entered into a memorandum of understanding (MoU) with Indonesia's PT Adiperkasa Citra Lestari (PT ACL) to collaborate on the development and manufacturing of Indonesia national car.
In a filing with Bursa Malaysia, DRB-Hicom said a feasibility study will be conducted to explore specific areas of cooperation between both parties, including the potential development and manufacturing project in Indonesia.
"The MoU is only an expression of the current intention of the parties and is not binding on both parties," it noted last Friday.
Both parties would also evaluate and work together to develop plans on localisation activities, purchasing activities, engineering and design activities, logistics services, market studies and other relevant processes relating to the project.
"Subject to the completion of a successful feasibility study, Proton and PT ACL will sign a definitive joint venture agreement for the proposed project," DRB-Hicom said.
Proton CEO Datuk Abdul Harith Abdullah said the collaboration will be good as both nations specifically work together to develop products for the larger market.
"Furthermore, Proton, which has the facilities, capabilities and technology know-how in design, development and manufacturing of cars, is the only company in Asean region with a research and development facilities in-house," he noted.
He also said that closer ties between both companies will surely facilitate international and regional investments, spurring more automotive markets activity and economic development.