Peugeot Indonesia possible to resume production image

Peugeot is considering resuming production at its local assembly plant in Indonesia in 2011. The production facility is owned by PT Gaya Motor, Peugeot’s affiliate and subsidiary of PT Astra International. Constantinus Herlijoso, the CEO of PT Astra International, has stated that he may submit the proposal for a production plan to Peugeot by the end of 2009.

“We plan to set up an assembling plant in Indonesia. The plant would commence operation no later than 2012,” Constantinus Herlijoso, president director of Astra Indonesia Peugeot (AIP), told

The assembly plant produced small and middle sized Peugeot sedans before the economic crisis of the late 1990s slashed demand for the vehicles.

Peugeot began 206 assembly in 2003 but halted output just two years later due to the skyrocketing value of the euro which hiked prices and plunged overall sales from 2,000 units in one year, to just 85 last year.

Speaking on the sidelines of the launch of the new Peugeot 407, Herlijoso said that Peugeot’s Indonesian plant is expected to become the production basis for the Southeast Asian market.

Source : Indonesian Ministry of Finance.