GIAMM Questions the Need for 4x4 Pickups for the Village/Urban Cooperative (Kopdes/Kel) Red and White Program

The Secretary-General of the Association of Automotive and Motorcycle Component Manufacturers (GIAMM), Rachmad Basuki, questioned the urgency of the need for 4x4 pickup trucks for the Village/Urban Cooperative (Kopdes/Kel) Red and White program, while also highlighting regulatory aspects, economic considerations, and the long-term impact on the domestic industry.

Rachmad believes that this issue needs to be viewed comprehensively so that the matter becomes clearer. First, he questioned the reason for the need for 4x4 specifications for operations in rural areas.

“With the current condition of village roads, is it absolutely necessary to have 4x4? If the reason is that there are no such specifications from SOEs like Agrinas, so it must be imported from India, that needs to be explained openly,” he said when contacted, Wednesday (2/25).

He explained that based on sales data from the last 10 years, the average pickup sales in Indonesia reached around 110 thousand units per year, and the majority of consumers chose the 4x2 type. According to him, this figure reflects the real market demand, including considering the infrastructure of roads in Indonesia.

“Sales of 4x4 do exist, but generally for specific needs such as mining, and the portion is small, averaging around 5 percent. Economically, mass production is not always feasible,” he explained.

Rachmad also touched on regulatory aspects. He reminded that the procurement of goods by SOEs must, in principle, meet the requirements for the Domestic Component Level (TKDN) and be produced domestically. In addition, vehicles that operate on the road must meet the Euro 4 emission test standards.

“It is also necessary to check whether the imported pickup trucks from India have met the Euro 4 standards as stipulated in Indonesia,” he said.

From the price side, he said that clarification of the detailed cost structure is needed. This is because the price of vehicles in Indonesia is generally in the form of on the road, including taxes such as VAT, Luxury Goods Sales Tax, BBN, and PKB. While import prices may still be in the FOB scheme and have not included tax components and other costs.

“If all tax components are included, plus warranty costs and after-sales service networks, it may actually be more expensive. If the cost of use is high, that is of course a separate consideration,” he said.

Regarding national production capacity, Rachmad said that a number of manufacturers that are members of Gaikindo are in principle able to produce 4x4 pickup trucks, as long as they are given time and certainty of demand.

Furthermore, he emphasized the long-term impact on the economy. The government is targeting economic growth of more than 6 percent, and the manufacturing sector is one of the main drivers because it is labor-intensive and absorbs a lot of labor.

“If we want to encourage economic growth, the automotive manufacturing sector must be strengthened. Domestic production certainly provides a greater multiplier effect,” he said.

Therefore, GIAMM believes that the fundamental question is whether the operational needs of cooperatives in rural areas require the use of 4x4 pickup trucks, or whether the 4x2 type, which has proven to be able to transport agricultural products, is sufficient.

“This is what needs to be assessed together so that the policies taken not only answer short-term needs, but also align with the interests of the national industry and economic growth,” Rachmad concluded. (Fal/P-3)

The planned procurement of a large number of operational vehicles for the Red and White Village Cooperatives needs to be reviewed.

The Minister of Cooperatives, Ferry Juliantono, ensured that the Red and White Village Cooperatives (Kopdes) would become a new economic ecosystem.

The Association of Village and Urban Cooperatives (Kopdes/Kel) Red and White throughout Indonesia was officially declared. This declaration is an important milestone in the unification of the village and urban cooperative movement.

This dynamic and real-time data-based cooperative transformation is the main foundation for the future work of the Ministry of Cooperatives.

The Red and White Kopdes are expected to create millions of jobs, especially for young people who will determine the future of cooperatives.

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