Massive Village Vehicle Procurement Raises Questions Over Rationale
Jakarta, VIVA – The procurement of commercial vehicles in massive quantities has once again come under scrutiny. Deputy Chair of House of Representatives Commission VII, Evita Nursanty, argued that the Rp24.66 trillion contract to support the operations of Village/Sub-district Red and White Cooperatives (KDKMP) is not merely a matter of logistics distribution, but also concerns the direction of national automotive industry policy.
The contract was secured by PT Agrinas Pangan Nusantara for a total procurement of 105,000 vehicle units from two Indian manufacturers. The breakdown includes 35,000 Scorpio Pik Up units supplied by Mahindra & Mahindra, whilst the remaining 70,000 units come from Tata Motors, comprising 35,000 Yodha Pick-Up units and 35,000 Ultra T.7 Light Truck units.
“This is procurement on an enormous scale. Its impact extends beyond village logistics to the structure of the national automotive industry,” said Evita in a statement on Friday, 20 February 2026.
According to her, with a project value reaching tens of trillions of rupiah, the policy has the potential to affect the domestic manufacturing ecosystem. As the working partner of the Ministry of Industry, Commission VII of the House of Representatives supports the government’s position that the national automotive industry has production capacity for pick-up vehicles of approximately one million units per year.
Evita assessed that this capacity demonstrates that, in terms of volume, domestic producers are capable of meeting commercial vehicle requirements, particularly for two-wheel-drive (4x2) types. “We are aligned with the Ministry of Industry in that government procurement must serve as an instrument to strengthen domestic industry. Our national production capacity is more than adequate,” she affirmed.
Beyond capacity, she also highlighted the importance of rationalising technical specifications. In her view, if procurement is directed towards four-wheel-drive (4x4) vehicles, there must be a data-based assessment of actual needs on the ground.
“If there are indeed areas with extreme geographical conditions requiring 4x4 vehicles, these must be mapped specifically. It cannot be generalised. There must be a needs assessment based on data and actual conditions in the field,” she said.
She cautioned that 4x4 vehicles carry higher purchase prices and operational costs compared to 4x2 models. Therefore, budget efficiency and the operational sustainability of village cooperatives must be primary considerations.
Evita also emphasised that the obligation to use domestic products is regulated under Law Number 3 of 2014 and Presidential Regulation Number 46 of 2025. Under these regulations, ministries and institutions 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.