Proton has signed a memorandum of understanding (MoU) with PT Adiperkasa Citra Lestari to develop and manufacture an Indonesian national car.

The MoU was signed by Proton CEO Datuk Abdul Harith Abdullah, witnessed by Malaysian ambassador to Indonesia Datuk Seri Zahrain Mohamed Hashim, with PT Adiperkasa Citra Lestari CEO Abdullah Mahmud Hendropriyono signing on behalf of the Indonesian partner, witnessed by Indonesian ambassador to Malaysia Herman Prayitno.

The MoU aims to further business opportunities between the two companies where development and manufacture of the proposed vehicle project are concerned. A feasibility study will be conducted, including the potential development and manufacturing of the project in Indonesia.

The collaboration potential will see both companies conduct feasibility studies to explore specific areas of cooperation, including commercial and technical aspects. The parties will also plan localisation, purchasing, engineering and design activities, logistic services, market studies and other relevant processes.

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The MoU is merely an expression of current intentions and is not binding on both parties. Subject to the completion of a successful feasibility study, Proton and PT Adiperkasa Citra Lestari will sign a definitive joint-venture agreement for the proposed project.

“The collaboration will be good as both nations specifically work together to develop products for the larger market. Proton, which has the facilities, capabilities and technology know-how in design, development and manufacturing of cars, is the only company in ASEAN with an in-house R&D facility,” said Harith.

“No other countries in this region have their own national car project other than providing manufacturing and assembly services,” he added.

Present at the signing is Prime Minister Datuk Seri Najib Tun Razak, Proton chairman Tun Dr Mahathir Mohamad and Indonesian president Joko Widodo, who is in town for a three-day official visit.