Proton, RI firm to team up

Proton, RI firm to team up

KUALA LUMPUR (AFX-ASIA): Perusahaan Otomobil Nasional Bhd (Proton) said its unit Proton Edar Sdn Bhd will jointly set up a company with PT Ningz Multiusaha to undertake the assembly and distribution of Proton cars in Indonesia.

The joint venture company, PT Proton Edar Indonesia, will have an initial authorized share capital of the rupiah equivalent to US$10 million and a issued and paid-up capital of US$2.5 million.

Proton Edar will hold a 70 percent interest, with the remaining held by PT Ningz.

Proton Edar's subscription of shares in PT Proton Edar will be at par and will be financed through internally generated funds.

The proposed joint venture will enable Proton to establish a bigger presence in the ASEAN market through a high growth passenger market, it said.

PT Ningz will provide, via the PT Ningz Pacific Group, readily available facilities which will reduce significant investment outlays and quicker start-up for the assembly of Proton vehicles in Indonesia.

The roll out of the first Indonesian assembled Proton car is expected in the middle of this year.