DPR: Procurement of Merah Putih Cooperative Vehicles to Have Major Impact on Industry
Jakarta (ANTARA) — Deputy Chair of Commission VII of the Indonesian House of Representatives (DPR RI), Evita Nursanty, has assessed that the procurement of commercial vehicles worth Rp24.66 trillion from an Indian automotive manufacturer, secured by PT Agrinas Pangan Nusantara to support the operations of the Merah Putih Village/Sub-district Cooperatives (KDKMP), will have a significant impact on the structure of the national automotive industry.
She expressed support for the Ministry of Industry’s statement that the national automotive industry has the production capacity for pickup vehicles of up to approximately one million units per year. According to her, this capacity demonstrates that the domestic industry is in fact capable of meeting the demand for commercial vehicles, particularly the two-wheel-drive (4x2) type.
“This is a procurement on an enormous scale. The impact extends beyond village logistics to the very structure of the national automotive industry,” said Evita in Jakarta on Friday.
According to her, government procurement must serve as an instrument to strengthen domestic industry, particularly given the highly adequate national production capacity.
She also highlighted the importance of transparency and rationalisation of technical specifications, especially if the procurement is directed towards four-wheel-drive (4x4) vehicles.
She noted that not all village roads in Indonesia require 4x4 functionality, as the majority of village logistics distribution can still be served by domestically produced 4x2 vehicles.
“If there are indeed areas with extreme geographical conditions requiring 4x4 vehicles, these must be specifically mapped out. It cannot be generalised. There must be a needs assessment based on data and actual field conditions,” she said.
Furthermore, she added that 4x4 vehicles have higher purchase prices and operational costs compared to 4x2 vehicles, meaning that specification decisions must consider budget efficiency and the operational sustainability of the cooperatives.
She reminded that the obligation to use domestic products is regulated under Law Number 3 of 2014 and Presidential Regulation Number 46 of 2025.
These regulations stipulate that ministries and agencies are required to prioritise products with a minimum Local Content Level (TKDN) of 25 per cent, or a combined TKDN and company benefit weighting of at least 40 per cent.
She emphasised that imports may only be conducted when domestic products are unavailable or their volume is insufficient.
“Therefore, the argument of unavailability must be explained objectively. Technical specifications must not be designed in such a way that domestic products are deemed unavailable,” she said.
She affirmed that strengthening domestic industry is part of the national industrialisation strategy consistently articulated by President Prabowo Subianto.
“A procurement of this magnitude must become a catalyst for strengthening national manufacturing and driving import substitution,” she said.