Out of the blue, we were surprised by the plan of PT Agrinas Pangan\nNusantara (Agrinas) to import 105,000 commercial vehicles from India.\nThis corporate action, funded by the state budget (APBN), needs to be\nreconsidered.<\/p>\n
President Prabowo has initiated various priority programmes such as\nMBG and KDPM, one of whose objectives is to strengthen the domestic\neconomy, especially to stimulate the rural economy.<\/p>\n
MBG and KDMP are expected to boost demand for food products that can\nbe supplied from villages. To meet this increased demand, the Ministry\nof Agriculture needs to improve agricultural productivity from the\nupstream side.<\/p>\n
In this way, the circulation of the economy in the villages will\ngrow, and this will naturally reduce the need for imported food\nproducts. This economic architecture should be fully understood by the\npresident\u2019s subordinates, including those in state-owned enterprises\n(BUMN).<\/p>\n
The plan by PT Agrinas to import 105,000 commercial vehicles from\nIndia indicates that they have not fully understood the president\u2019s way\nof thinking. Let\u2019s just look at the data: since 2011, the growth of the\nmanufacturing industry has always been below the growth of GDP.<\/p>\n
In fact, the manufacturing sector should be our mainstay in\ndeveloping the downstream sector from natural resources (SDA). The\nmanufacturing sector can also be a source of employment for graduates\nfrom various universities. In reality, more than 1 million of our\ngraduates are unemployed.<\/p>\n
Come on, BUMN needs to think about this too. The plan to import\n105,000 commercial vehicles will actually harm the national economy.<\/p>\n
Calculations by Celios, published by various media outlets, mention\nthe potential losses from the plan to import these vehicles, including:\neroding GDP by IDR 39.29 trillion, reducing people\u2019s income by IDR 39\ntrillion, cutting the surplus in the automotive industry by IDR 21.67\ntrillion, reducing the income of workers throughout the automotive\nindustry\u2019s supply chain by IDR 17.39 trillion, and reducing net tax\nrevenue by IDR 240 billion.<\/p>\n
Did PT Agrinas have any communication with domestic manufacturers,\nfor example, with Gaikindo? The procurement of 105,000 commercial\nvehicles is almost equivalent to the production of commercial vehicles\nthroughout 2025.<\/p>\n
Imagine if the procurement of vehicles by PT Agrinas could be done\ndomestically. This step would boost the domestic automotive industry,\ncreate new jobs, and have other economic ripple effects.<\/p>\n
The plan to purchase these vehicles uses the APBN and is multi-year.\nGiven the limited fiscal space in the APBN structure, every purchase of\ngoods and services using APBN funds should consider the economic\nbenefits.<\/p>\n
It may be that the purchase price from India is cheaper, but has the\nafter-sales service been considered, as well as the availability and\nreach of spare parts and workshops? If we consider all of this, it may\nturn out to be more expensive than the initial intention of\nefficiency.<\/p>\n
The consideration of efficiency is only one thing; another strategic\naspect to be used as a basis is whether the programme will stimulate the\ndomestic industry or not. Referring back to the president\u2019s way of\nthinking, every step must have a basis for strengthening the domestic\nsupply chain or not.<\/p>\n
By choosing the import route, PT Agrinas is clearly turning away from\nthe path of strengthening the national industry. In fact, domestic\nproducers need greater demand so that their industries can grow more\nexpansively.<\/p>\n
I deeply regret that APBN funds are being spent but do not provide\nadded economic value for the people in the country. It would be wiser\nnot to reconsider this step, but to cancel it.<\/p>\n
Said Abdullah, Chairman of the Budget Agency (Banggar) of the\nIndonesian House of Representatives (DPR RI)<\/p>\n
(akd\/akd)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/strengthen-domestic-industry-agrinas-should-not-import-commercial-vehicles-1771996070", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }