Malaysia Automotive Institute (MAI) and the Institut Otomotif Indonesia (IOI) have inked an agreement to foster long-term collaboration in the development of the automotive industry. The agreement was signed in Jakarta in conjunction with minister of international trade and industry Darell Leiking’s working visit to Indonesia.

Among the agendas discussed with his Indonesian counterpart during the visit was the potential development of the ASEAN car between the two countries. In June, prime minister Tun Dr Mahathir Mohamad had hinted at the possibility of reviving the Malaysia-Indonesia ASEAN car project.

The areas of collaboration within the MoA will be geared towards the preparation of the supply chain through the enhancement of product, process and research capabilities. It will also gradually explore the development of an ASEAN car.

The Institut Otomotif Indonesia (IOI) was established by Indonesia’s ministry of industry in May 2016 to enhance the development of Indonesia’s automotive industry, and functions and operates in a similar manner to MAI.

In March this year, both institutes organised a joint business matching programme between Malaysian and Indonesian automotive vendors as a means to identify potential business partners for greater market access. A total of 18 Malaysian and 30 Indonesian vendors from various automotive manufacturing clusters took part in the programme, with 10 Malaysian vendors successfully identifying potential business partners from Indonesia.

According to MAI CEO Datuk Madani Sahari, both parties will continue to support and facilitate partnerships between Malaysian and Indonesian vendors through various development programmes. “More programmes will be organised by MAI and IOI in both exploring potential market opportunities and the transfer of technology,” he said.