Indonesian automotive components maker PT Astra Otoparts Tbk and NYSE-listed Visteon Corp. have announced the establishment of a new joint venture that will produce car parts for both the Indonesian and global markets.

Astra Otoparts and Visteon, according to the announcement, will have equal 50-50 holdings in the new company, PT Astra Visteon Indonesia, that is expected to start operations in the first quarter of 2012 after securing regulatory approvals.

Investment and projected revenue values were not disclosed, however.

The joint venture, to be based in Citeureup, Bogor, will produce electronic instrument clusters for automotive and motorcycle manufacturers in Indonesia, including foreign vehicle companies operating there.

Vistreon said it was attracted by the double-digit growth in Indonesia's automotive market, which is now "the world's third largest two-wheeler market while the four-wheeler market is one of the fastest-growing in the region."

Astra Otoparts, a subsidiary of automotive giant PT Astra International, has established a "strong market knowledge and relationships" in the Indonesian automotive components manufacturing and trading sector, the company announcement said.

The company, which has reported a net income of 1.14 trillion rupiahs (US$131.6 million) for 2010, has more than 31 subsidiaries and affiliates and employs approximately 32,939 people.

Siswanto Prawiroatmodjo, Astra Otoparts president, said in the announcement that the new joint venture "allows both companies to offer world-class products to our Indonesia-based customers and support their growth by supplying localized products."

On the other hand, Vistreon, which designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicles, currently supplies a number of manufacturers of two-wheelers in Thailand and India.

Michigan-based Visteon has facilities in 26 countries with some 26,500 employees.

Steve Meszaros, Visteon product group president, said the partnership "brings complementary strengths to what is fast becoming one of the most exciting automotive markets in Southeast Asia."

"Visteon's technology expertise combined with Astra Otoparts domestic leadership position will help us capitalize on the potential of the Indonesian market and enhance Visteon's strong Asia presence and global reach," he said.