PT Astra International , Indonesia’s largest vehicle distributor, announced it plans to restart assembly of Peugeot vehicles at its PT Gaya Motors subsidiary in Jakarta.

The company confirmed it will launch completely knocked down (CKD) assembly at the end of 2012 in collaboration with the French carmaker, with deliveries to local dealers starting at the beginning of 2013. The CKD kits will be sourced from France, with some generic parts to be made locally.

The company currently imports completely built-up (CBU) vehicles from France and Malaysia, although sales volumes are very limited – less than 100 units in the first half of 2011.  It hopes that local assembly will help it reduce prices and increase volumes.