It’s hard to believe that PROTON has been around for a little over 3 decades as of this year. The company has had a history filled with ups and downs, but they’ve endured and pulled through- developing some highly impressive models that are quite nearly competitive on an international scale. Indonesia, on the other hand, doesn’t have a national car brand; it has had various projects tied up with Japanese manufacturers for the development of a fuel-efficient, low cost car, but nothing that they can lay claim to as their own. That’s where PROTON comes in.
PROTON Holdings Berhad (“PROTON”) today announced the signing of a Memorandum of Understanding (MoU) with PT. Adiperkasa Citra Lestari (“PT ACL”) to establish cooperation ties between Malaysia and Indonesia (“Parties”) in relation to the development and manufacturing of Indonesia National Car. Signing on behalf of PROTON was Chief Executive Officer, Dato’ Abdul Harith Abdullah and witnessed by the Malaysian Ambassador to the Republic of Indonesia, H.E. Dato’ Seri Zahrain Mohamed Hashim whilst signing on behalf of PT ACL was Chief Executive Officer, Mr Abdullah Mahmud Hendropriyono and witnessed by Indonesian Ambassador to Malaysia, H.E. Herman Prayitno.
The MoU is aimed at furthering business opportunities between both companies of the two neighbouring countries in areas relating to the development and manufacturing of the proposed vehicle project. Under the MoU, a feasibility study will be conducted to explore specific areas of cooperation between the two companies, including the potential development and manufacturing of the project in the Republic of Indonesia. The MoU is only an expression of the current intention of the Parties and is not binding on both Parties.
With the collaboration potential, both companies will come out with a feasibility study in the overall areas of the automotive operations and business, including the commercial and technical aspects of the project. Apart from that, the Parties would also evaluate and work together to develop plans on localisation activities, purchasing activities, engineering and design activities, logistic 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.
