This article first appeared in The Edge Financial Daily on July 11, 2018

KUALA LUMPUR: Proton Holdings Bhd will proceed with its plan to create an Indonesian national car and subsequently explore the idea of creating an Asean regional car in collaboration with PT Adiperkasa Citra Lestari, said its chairman Datuk Seri Syed Faisal Albar.

“Certainly. We will proceed with the discussion in that respect,” Syed Faisal told reporters after meeting the five-man Council of Eminent Persons (CEP) at Menara Ilham here yesterday.

Syed Faisal, who was accompanied by Proton chief executive officer (CEO) Dr Li Chunrong and deputy CEO Datuk Mohd Radzaif Mohamed, said “no cost is involved” at this juncture.

In 2015, Proton inked a memorandum of understanding with PT Adiperkasa Citra Lestari to explore opportunities to develop and manufacture an Indonesian national car, and will conduct feasibility studies to look at areas of cooperation.

Last month, during his official visit to Indonesia, Prime Minister Tun Dr Mahathir Mohamad raised the possibility of reviving a proposed project for a Malaysia-Indonesia car for the Asean market after meeting Indonesian President Joko Widodo.

“Back in 2015, we discussed to jointly produce a car made by Indonesia and Malaysia for Southeast Asian nations, but it had not been followed up. Now we are looking at reviving the project,” Dr Mahathir was quoted as saying.

Meanwhile, Syed Faisal said yesterday the council wanted to find out Geely’s level of conviction in turning Proton into a highly successful auto company.

Geely, controlled by Chinese tycoon Li Shufu, recently bought close to 10% of Daimler AG, which owns the premium German-made Mercedes-Benz cars, for US$9 bilion (RM36.09 billion). Geely also has a controlling stake in Volvo AG and London Taxi Company, as well as firms with flying-car technology in California, the US.

“Based on their (Geely) track record, we told the CEP that Geely is the most suitable partner to take Proton to a higher level,” said Syed Faisal.