House of Representatives Questions Import of 105,000 Indian Pickup Trucks for Village Cooperatives: National Production Capacity Sufficient
Jakarta — Deputy Chairwoman of House Commission VII Evita Nursanty has underscored the importance of using domestically manufactured products in the procurement of vehicles for the operational needs of the Merah Putih Village/Sub-district Cooperatives (Kopdes), amid the signing of a commercial vehicle procurement contract worth Rp24.66 trillion.
She argued that such a large-scale procurement project must serve as a catalyst for strengthening the national automotive industry, rather than merely fulfilling village logistics distribution requirements.
“This is an extremely large-scale procurement. Its impact extends beyond village logistics to the very structure of the national automotive industry,” Evita said in a statement in Jakarta on Friday.
The contract covers the procurement of a total of 105,000 vehicles from two Indian automotive manufacturers: 35,000 units of the Scorpio Pickup from Mahindra & Mahindra, and 70,000 units from Tata Motors comprising 35,000 Yodha Pickup units and 35,000 Ultra T.7 Light Truck units.
As the working partner of the Ministry of Industry, House Commission VII also expressed support for the government’s position that the national automotive industry possesses sufficient production capacity for pickup vehicles, estimated at approximately one million units per year.
“We are aligned with the Ministry of Industry’s view that government procurement must serve as an instrument to strengthen domestic industry. Our national production capacity is more than adequate,” she affirmed.
Evita added that there is a need for transparent rationalisation of the vehicles’ technical specifications, particularly if the procurement is directed towards four-wheel-drive (4x4) variants. According to her, not all village areas require vehicles with such specifications.
“If there are indeed areas with extreme geographical conditions requiring 4x4 vehicles, these must be mapped out specifically. It cannot be generalised. There must be a needs assessment based on data and actual conditions on the ground,” she said.
She cautioned that 4x4 vehicles carry higher purchase prices and operational costs compared to 4x2 variants, meaning specification decisions must take into account budget efficiency and the operational sustainability of the cooperatives.
Furthermore, Evita emphasised that the obligation to use domestic products is enshrined in Law No. 3 of 2014 and Presidential Regulation No. 46 of 2025. These regulations require ministries and government agencies to prioritise products with a minimum Local Content Level (TKDN) of 25 per cent, or a combined TKDN and corporate benefit weighting of at least 40 per cent. Imports may only be carried out if domestic products are unavailable or insufficient in volume.