"We want to redirect it toward the development of ASEAN cars," President of the Indonesian Automotive Institute (IOI) I Made Dana Tangkas stated here on Friday.
Some 40 percent of the components of the ASEAN cars would be sourced from ASEAN member countries.
"We have ASEAN content, with components produced by each member country. After 100 percent completion, that is what we call ASEAN cars," Made elaborated.
Regarding the plan, he noted that Indonesian and Malaysian industries had established a joint venture to develop the automotive component industry to meet the demand in both countries.
The joint venture will also improve research and development to create automotive products that are in demand in the ASEAN market.
Made remarked that three Indonesian component firms are ready to establish joint ventures with Malaysian industries.
"Two of them are members of PIKKO (the Association of Small and Medium Industry on Automotive Component)," he revealed.
Meanwhile, Chief Executive Officer of the Malaysia Automotive Institute Madani Sahari stated that both countries have the potential in the component industry.
"If we can collaborate with them, it could meet 90 percent of the automotive component demand in the ASEAN," Madani remarked.
Director General for development of industry`s international access of the Industry Ministry I Gusti Putu Suryawirawan noted that both countries should improve research and development in the ASEAN automotive industry.
"Based on that research, we can have common products. They will identify which component industry is feasible for collaboration," Suryawirawan added.