SHAH ALAM (Feb 6): Proton Holdings Bhd has inked a Memorandum of Understanding (MoU) with PT Adiperkasa Citra Lestari (PT ACL) for the development and manufacturing of Indonesia's national car.
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.
Signing on behalf of Proton was its chief executive officer (CEO) Datuk Abdul Harith Abdullah, while PT ACL was represented by its CEO Abdullah Mahmud Hendropriyono.
The ceremony was witnessed by Ambassador of Malaysia to the Republic of Indonesia, Datuk Seri Zahrain Mohamed Hashim, and Ambassador of Republic of Indonesia to Malaysia, Herman Prayitno.
Malaysia Prime Minister Datuk Seri Najib Razak, Indonesian President Joko Widodo and Proton chairman Tun Mathathir Mohamad were also present at the signing ceremony.
Under the MoU, a feasibility study will be conducted to explore specific areas of cooperation, including the potential development and manufacturing of the said vehicle in Indonesia.
The MoU is only an expression of the current intention of the parties and not binding on both parties.
"The collaboration will be good, as both nations work together to develop products for the larger market," said Harith.
"Closer ties between both companies will surely facilitate international and regional investment, spurring more automotive markets activity and economic development," he added.
Abdullah Mahmud said the MoU was a major development for the Indonesian automotive industry, where the collaboration will offer wider job opportunities to its people.