Proton to invest in RI this year

JAKARTA: Malaysian carmaker Proton will invest in Indonesia later this year in anticipation of the ASEAN Free Trade Area (AFTA), a senior official of the industry and trade ministry said here on Tuesday.

"Proton will make Indonesia its production base for the manufacture of sedans with an open basin in the rear," Achdiat Atmawinata, the ministry's director general for metal, machine, electronic and multifarious industries, said without specify the production capacity of the Malaysian car manufacturer in Indonesia.

Proton intends to take advantage of the ASEAN free market under the AFTA scheme as Indonesia is a big market for cars, said Achdiat, adding that nearly 10 percent of Indonesia's population of 210 million could afford to buy cars.

"That is why we hope Proton will offer its cars to Indonesia's middle class buyers at affordable prices," he said, predicting Proton would start production in Indonesia in 2003. -- JP