Coop Minister: Indian Trucks and Pickups Already Imported Will Still Be Allocated for KDMP
Bandung (ANTARA) - Cooperatives Minister Ferry Juliantono has revealed that trucks and pickups already imported from India will still be distributed for the operations of Red-White Cooperatives that are ready to operate.
“Yesterday, because they were already imported, with thousands in number, we will fulfil them for operations in village cooperatives that have completed physical construction, warehouses, outlets, and supporting equipment,” said Ferry after the halal bihalal of the West Java Branch of Syarikat Islam, at Al Jabbar Mosque in Bandung, West Java, on Sunday.
Ferry explained that each cooperative will receive one 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 Village and Subdistrict Red-White Cooperatives (around 2,400 cooperatives),” he stated.
Although distributing imported operational vehicles, Ferry acknowledged that priority should still be given to the domestic automotive industry or those that have invested in Indonesia.
“But if there is a shortfall, we are certainly allowed to source from any country,” he said.
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 Red-White Cooperatives, projected to number more than 80,000 units.
“To meet the remaining needs of the Red-White Cooperatives, we have discussed this with the Industry Minister, with Gaikindo, and we will prioritise our domestic automotive industry that has been established,” he added.
The government targets more than 80,000 Red-White Cooperatives to be established in villages and subdistricts across Indonesia.
The government provides initial capital access for Red-White Cooperatives with a ceiling of up to Rp3 billion per unit from Himbara banks, with an interest rate of around 6 percent per year, a 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 Red-White Cooperatives.
This import consists of 35,000 units of 4x4 pickup cars 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 Rp24.66 trillion.
From circulating information, one reason Agrinas imported Indian-made vehicles is that the domestic industry cannot yet meet the needs for 4x4 drive pickups.
However, this step of importing trucks and pickups from India has drawn widespread scrutiny. This is because the procurement of 105,000 units of pickups and trucks by the state-owned food company is considered to have a potentially negative impact on the domestic vehicle industry, which is known to be labour-intensive with thousands of workers.