Parliamentary Budget Committee Recommends Agrinas Forego Vehicle Imports, Strengthen Domestic Industry Instead

The Parliamentary Budget Committee (Banggar) of the House of Representatives has raised concerns regarding PT Agrinas Pangan Nusantara’s (Agrinas) plan to import 105,000 commercial vehicles from India.

Banggar chair Said Abdullah stated that this corporate action using state budget funds requires reconsideration. He noted that President Prabowo has announced several priority programmes, including the Food Resilience Programme (MBG) and the Domestic Consumption Enhancement Programme (KDPM), which aim to strengthen the domestic economy, particularly by revitalising rural economies.

Said explained that the MBG and KDPM are intended to drive demand for agricultural products sourced from villages. To meet this increased demand, the Agriculture Ministry must enhance agricultural productivity. This would stimulate economic circulation in rural areas and naturally reduce food imports. “This economic architecture should be fully understood by the President’s subordinates, including those in state-owned enterprises,” he said in Jakarta on Wednesday.

He noted that Agrinas’s plan to import 105,000 commercial vehicles from India indicates incomplete understanding of the President’s thinking. “Let us examine the data: since 2011, manufacturing industry growth has consistently fallen below GDP growth,” said Said.

However, he argued, the manufacturing sector should serve as the backbone for developing downstream sectors from natural resources. Manufacturing can also absorb employment for university graduates. “More than one million of our graduates are unemployed,” he said. “Come on, state enterprises must consider this matter,” he added.

According to Said, the plan to import 105,000 commercial vehicles would instead damage the national economy. Calculations by Celios cited in various media outlets identified potential losses from the import plan, including GDP erosion of Rp 39.29 trillion, decreased public income of Rp 39 trillion, reduced automotive sector surplus of Rp 21.67 trillion, reduced worker income across the entire automotive supply chain of Rp 17.39 trillion, and suppressed net tax revenue of Rp 240 billion.

“Does PT Agrinas have no communication with domestic manufacturers, such as Gaikindo?” Said questioned. He noted that procuring 105,000 commercial vehicles approximates the entire commercial vehicle production for 2025. “Imagine if Agrinas’s vehicle procurement could be conducted domestically. This step would revitalise the domestic automotive industry, create new employment, and generate multiplier economic effects,” he said.

He pointed out that the vehicle purchase plan utilises state budget funds across multiple years. Given limited fiscal space in the state budget, every purchase of goods and services using state funds must account for economic benefits. “Whilst Indian suppliers might offer lower prices, have aftersale services, spare parts availability, and workshop access been considered? Taking all these into account, the price may actually be higher than initially intended for efficiency,” he said.

He cautioned that efficiency considerations alone are insufficient; more strategically, the programme must be evaluated on whether it stimulates domestic industry growth. “Returning to the President’s thinking: should every step be evaluated on whether it strengthens domestic supply chains or not?” he asked.

By choosing the import route, according to Said, PT Agrinas is turning its back on strengthening national industry. Domestic producers need greater demand to grow more expansively. “I deeply regret that state budget money is spent without adding economic value for citizens. More wisely, this step should not merely be reconsidered—it should be cancelled,” he concluded.