Parliamentary Budget Committee Says Agrinas Should Not Import 150,000 Pickup Trucks from India

Jakarta – Indonesia’s Parliamentary Budget Committee (Banggar) of the House of Representatives has stated that PT Agrinas Pangan Nusantara (Agrinas) should not import 105,000 pickup trucks from India for the Koperasi Desa Merah Putih programme.

Banggar chairman Said Abdullah stated that importing these vehicles poses a potential threat to the national economy and requires reconsideration, particularly since the corporate initiative is being funded through the state budget (APBN).

“This vehicle procurement plan uses APBN funds and is structured as a multi-year commitment. Given the limited fiscal space in the APBN structure, every purchase of goods and services using state budget money should be evaluated for its economic benefit,” Said said in a statement on Wednesday, 25 February 2026.

He cited analysis from the Center of Economic and Law Studies (Celios) that identified potential losses from the vehicle import plan, including a reduction in gross domestic product (GDP) of up to Rp39.29 trillion and a decline in household income of Rp39 trillion.

The analysis also projected that the automotive industry surplus could be cut by Rp21.67 trillion, workforce income across the entire automotive supply chain reduced by Rp17.39 trillion, and net tax revenue reduced by Rp240 billion.

Whilst acknowledging that Indian commercial vehicles may offer lower purchase prices, Said emphasised the need to consider after-sales service, the availability and accessibility of service centres, and spare parts availability.

“If all these factors are considered, the final cost could actually exceed the initial efficiency target,” he said.

Said argued that efficiency considerations represent only one factor, and that the more strategic consideration should be whether the programme supports the revival of domestic industry.

By choosing the import route, Said contended that Agrinas was turning its back on and neglecting efforts to strengthen Indonesia’s domestic automotive sector.

Domestic manufacturers need larger demand to enable their industries to grow more expansively, he added.

He expressed deep regret that APBN expenditure should be spent in a manner that fails to deliver economic value added for the Indonesian population.

“This step should not merely be reconsidered but should be cancelled entirely,” Said said.

The import initiative by Agrinas was previously announced by Indian automotive company Mahindra and Mahindra Ltd (M&M) on 4 February 2026, when it declared plans to supply 35,000 units of Scorpio pickup trucks.