Indonesian Political, Business & Finance News

Already Imported, Thousands of Pickups for Merah Putih Cooperatives

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Social Policy

Cooperatives Minister Ferry Juliantono has revealed that trucks and pickups already imported from India will still be distributed for the operations of the Merah Putih Cooperatives, which are ready to commence activities. “Yesterday, because they were already imported, with the number still in the thousands, we will fulfil them for operations in village cooperatives that have completed their physical buildings, warehouses, outlets, and supporting equipment,” said Ferry after the halal bihalal event of the West Java Branch of Syarikat Islam, at Masjid Al Jabbar in Bandung, West Java, on Sunday, 29 March 2026. Ferry explained that each cooperative will receive one unit of truck and one pickup, as well as a motorcycle, to facilitate and smooth the flow of goods mobility from villages to outside and vice versa. “Now, thousands of trucks and pickups have been distributed to the Merah Putih Village and Sub-district Cooperatives (around 2,400 cooperatives),” he stated. Although distributing imported operational vehicles, Ferry said that the priority should still be on the domestic automotive industry or those that have invested in Indonesia. “But if it’s insufficient, we are certainly allowed to take from any country,” he added. Nevertheless, Ferry stated that there have been discussions between him and Industry Minister Agus Gumiwang Kartasasmita, as well as the Indonesian Automotive Industry Association (Gaikindo), to meet the remaining needs of the Merah Putih Cooperatives, projected to establish more than 80,000 units. “To meet the remaining needs of the Merah Putih Cooperatives, we have discussed this with the Industry Minister, with Gaikindo, and we will prioritise our domestic automotive industry that has been established,” said the Cooperatives Minister. The government targets more than 80,000 Merah Putih Cooperatives to be established in villages and sub-districts across Indonesia. The government provides initial capital access for Merah Putih Cooperatives with a ceiling of up to Rp 3 billion per unit from Himbara banks, with an interest rate of around 6 percent per year, tenor of 6-10 years, and a grace period of 6-8 months. Previously, it was reported that Agrinas Pangan imported trucks and pickups from India to support the operations of Merah Putih Village Cooperatives. This import consists of 35,000 units of 4x4 pickups produced by Mahindra Ltd, as well as 70,000 units from Tata Motors, comprising 35,000 units of 4x4 pickups and 35,000 units of six-wheeled trucks. The total import value reaches Rp 24.66 trillion. One reason Agrinas imported Indian-made vehicles is that the domestic industry cannot yet meet the needs for 4x4 pickups. However, the step of importing trucks and pickups from India has drawn widespread attention. This is because the procurement of 105,000 units of pickups and trucks by the state-owned food company is considered to potentially have a negative impact on the domestic vehicle industry, which is known to be a labour-intensive sector with thousands of workers.

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