ICW: Potential Rent-Seeking in Village Cooperative Pickup Procurement Equivalent to Mortgage Subsidies

Indonesia Corruption Watch (ICW) suspects there is potential for rent-seeking in the procurement of pickup vehicles for the Merah Putih Cooperatives amounting to Rp 5.54 trillion. ICW assesses that this amount of money could be used by the government to subsidise housing down payments worth Rp 978 billion for 240,000 units. The funds could also be used to subsidise mortgage interest, or KPR, worth Rp 4.51 trillion for 743,940 units. “There is an opportunity cost lost that could have provided welfare for the community,” said ICW Head of Law and Investigation Wana Alamsyah in South Jakarta on Friday, 10 July 2026. The statement was delivered by ICW while presenting findings of alleged rent-seeking in the procurement of pickups for cooperative operations. Wana said ICW predicts a discrepancy of Rp 4–5 trillion from the total purchase value of the pickups. Wana explained that PT Agrinas Pangan Nusantara, as the buyer, signed a contract with PT Bumi Indo Gemilang as an import intermediary to Mahindra & Mahindra, the pickup manufacturer from India. Agrinas Pangan purchased one pickup unit for Rp 255 million. If the purchase reaches 80,000 units, the budget required by Agrinas Pangan is Rp 20.4 trillion. However, Wana said, the purchase price per pickup unit by Agrinas Pangan differs from the purchase price made by Bumi Indo Gemilang. Wana continued that based on ICW’s tracing of export-import data, Bumi Indo Gemilang’s purchase price was only Rp 168.8 million per pickup unit. This price does not yet include the profit received by Bumi Indo Gemilang. ICW calculates that if Bumi Indo Gemilang charges a 10–15 per cent profit on the purchase, the price that Agrinas Pangan must pay is Rp 186–194 million. Thus, ICW suspects a disparity of around Rp 61–69 million per unit. This means there is a potential for rent-seeking worth Rp 4.86–5.54 trillion from the total procurement of 80,000 pickup units. Wana explained that the alleged rent-seeking is the result of ICW’s open data-based tracing of supply chain and export-import data from 2024 to May 2026. Besides finding differences in purchase prices, ICW highlighted the appointment of Bumi Indo Gemilang as an import intermediary in the pickup procurement. The government or PT Agrinas Pangan should have been able to import directly without an intermediary as stipulated in Article 59 of Government Regulation Number 29 of 2021. Wana explained that the regulation allows the government to buy directly from the producer for value efficiency. ICW also questioned the appointment of Bumi Indo Gemilang as an intermediary. This is because ICW’s tracing states that the company, established on 6 June 2018, has no track record of importing cars. Wana explained that Bumi Indo Gemilang only added the KBLI code for retail trade of new cars on 12 November 2025. Over the alleged rent-seeking practice, ICW urged President Prabowo Subianto to stop the pickup purchases and evaluate them. ICW also urged PT Agrinas Pangan to open the pickup procurement documents to the public in their entirety, not partially. Finally, ICW asked the Corruption Eradication Commission to examine the potential for rent-seeking.