DPR Chairman Calls on Agrinas to Abandon 105,000-Vehicle Import Plan

Said Abdullah Asks Agrinas to Cancel Plan to Import 105,000 Commercial Vehicles

The Chairman of the DPR RI Budget Committee, Said Abdullah, has asked PT Agrinas Pangan Nusantara (Agrinas) to cancel its plan to import 105,000 commercial vehicles from India.

Said believes that the plan has the potential to weaken the national automotive industry and is not in line with efforts to strengthen the domestic economy. Moreover, the purchase will be funded by the state budget (APBN) and will be a multi-year project.

He reminded that every state expenditure must be calculated for its economic benefits to domestic industries and labour.

“This corporate action funded by the APBN needs to be reconsidered,” said Said.

Said mentioned that President Prabowo has launched a number of priority programmes, such as the Free Nutritious Meal (MBG) and the Red and White Village Cooperative (KDMP), to boost the village economy and strengthen the domestic supply chain. Therefore, the policies of state-owned enterprises (BUMN) should be in line with this direction.

According to him, the plan to import 105,000 commercial vehicles reflects a lack of synchronisation in efforts to strengthen domestic industries.

Specifically, Said highlighted the performance of the manufacturing sector, which has grown below the gross domestic product (GDP) growth rate in recent years. In fact, the manufacturing sector is considered strategic for developing downstream industries and absorbing labour.

In addition to the issue of the number of unemployed graduates, which has reached more than one million, Said also mentioned the calculations of the Center of Economic and Law Studies (Celios), which state the potential economic impact of the import plan, ranging from a potential reduction in GDP of up to IDR 39.29 trillion, a decrease in public income of IDR 39 trillion, to a decrease in the surplus of the automotive industry of up to IDR 21.67 trillion.

There is also the potential for a reduction in labour income throughout the automotive industry supply chain, which is estimated to reach IDR 17.39 trillion, and a decrease in net tax revenue of up to IDR 240 billion.

Furthermore, Said questioned Agrinas’ communication with domestic automotive manufacturers and the Indonesian Automotive Industry Association (Gaikindo). He noted that the number of 105,000 units is almost equal to the production of commercial vehicles in one year.

“If the procurement is carried out domestically, it could revive the automotive industry, absorb labour, and create a multiplier effect for the economy,” he said.

Said also mentioned the aspects of after-sales service, the availability of spare parts, and the network of workshops, which should be considered. He said that a lower purchase price does not necessarily mean efficiency if the long-term costs are higher.

Said emphasised that strategic considerations are not only about price, but also about whether the policy strengthens the national industrial supply chain.

“It would be wiser if this step is not only reconsidered but cancelled,” Said concluded.

(rea/rir)[Image: CNN Video]