Indonesia signs MoU for national car

JAKARTA: Indonesia’s bid to mass-produce cars of a homegrown brand in 2027 is “highly ambitious”, experts say.

They noted that an electric vehicle model would require sustained fiscal outlays and far stronger technical competencies than the country currently possesses.

State-owned defence manufacturer PT Pindad, tasked with developing the project, signed a memorandum of understanding with the National Development Planning Ministry last week to establish an industry ecosystem, conduct joint research and build human-resource capabilities.

National Development Minister Rachmat Pambudy said in a statement that, strengths and weaknesses aside, the country “has now taken the leap” to developing a national car prototype, a project that Pindad would carry forward.

President Prabowo Subianto had tasked Pindad with manufacturing the so-called “national car” in a bid to accelerate domestic industrial capabilities and curb foreign dependence. — The Jakarta Post/ANN