Sign up | Log in



Home  >>   Daily News  >>   Indonesia  >>Automotive  >> Govt says ‘national car’ agreement is private business matter
NEW UPDATES Asean Affairs   12 February  2015  

Govt says ‘national car’ agreement is private business matter

Indonesia: The government has insisted that the so-called national car project to be jointly implemented by Malaysia’s automaker Proton and Indonesia’s PT Adiperkasa Citra Lestari has nothing to do with it.

In a stark statement, President Joko “Jokowi” Widodo reiterated that the memorandum of understanding (MoU) signed by the two parties last week was purely a business arrangement.

“The MoU is a business-to-business arrangement and it is also at a very early stage; not to mention the fact that matters related to the feasibility study have yet to be done,” Jokowi said shortly after midnight on Tuesday at the Halim Perdanakusuma Airport in Jakarta upon his return from an official tour of three Southeast Asian neighbors.

Although he refused to explain the details of the deal, Jokowi suggested that it was not about “development and manufacturing an Indonesian national car” as clearly stated in Proton’s website.

“[I] haven’t thought about it [the possibility of Proton involvement in the national car project]. But clearly, if it is about the national car, the brand and the principal should be Indonesian,” he said.

“If [we are] speaking about a national car, of course, I will talk about the Esemka [a locally assembled car],” said Jokowi referring to the national car project he once promoted during his tenure as Surakarta mayor back in 2012. However, he did not elaborate on the Esemka project, the status of which remains unclear.

Jokowi said his presence at the recent MoU signing in Malaysia was merely at the invitation of Proton chairman Mahathir Mohamad and was also attended by Malaysian Prime Minister Najib Razak.

Jokowi said AM Hendropriyono, the CEO of Adiperkasa, was not a part of the presidential delegation that witnessed the MoU signing in Malaysia late last week.

Meanwhile, Industry Ministry acting director general for high-technology priority industry Panggah Susanto said on Tuesday that, learning from past experience, Indonesia would not offer discriminatory incentives to a specific party.

“We may give [general] incentives [to the industry], but they should not be discriminatory since such measures could backfire,” he said.

In 1993, the government launched a national car program and exempted import duty and sales tax for vehicles and its components, which benefited PT Timor Putra Nasional, partly owned by late former president Soeharto’s son, Hutomo “Tommy” Mandala Putra, and South Korean car manufacturer Kia Motors.

Following legal challenges from the EU, Japan and the US the World Trade Organization (WTO) decided the facilities accorded to the Korean imports breached its regulations.

Panggah added that as of yet, Hendropriyono, the former State Intelligence Agency (BIN) chief, had not reported the Proton-Adiperkasa project to his office.

Generally an automaker applies for a business permit with the Investment Coordinating Board (BKPM) and attaches the results of a feasibility study. Later it requests a type-examination and an import registration number if it sources the car or components overseas.

Separately, Association of Indonesian Automotive Manufacturers (Gaikindo) chairman Sudirman Maman Rusdi said the business group had no knowledge of the car project and did not want to comment before the definition of the car clear.

“If the government issues a new regulation regarding a national car project, we hope it will engage us in talks and ask for our input,” he said.

He stressed that the government should comply with WTO rules when launching a national car program. - See more at:

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                           February  12, , 2015 Subsribe Now !
• Affordable housing in demand Subcribe: Asean Affairs Global Magazine
• Govt to set up trading centers overseas
• Seagate to invest US$470m in Thailand
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Govt says ‘national car’ agreement is private business matter
• Singapore company announces $500M build at Chroy Changvar
Asean Analysis                    February 6, 2015
• Asean Analysis February 6, 2015
Myanmar’s Military Still a Wild Card as Elections Loom
Advertise Your Brand

Asean Stock Watch   February 11,  2015
• Asean Stock Watch-February 11 , 2015
The Biweekly Update
• The Biweekly Update February 6, 2015

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand