Procurement of 'Red and White' Village Cooperative Pickups Allegedly Marked Up by up to Rp 69 Million per Unit

The procurement of pickup trucks for the ‘Red and White’ Village Cooperatives (Kopdes Merah Putih) has been allegedly marked up by Rp 61 to 69 million per unit. The inflation of funds was uncovered by Indonesia Corruption Watch (ICW). Consequently, when accumulated with the procurement target of 80,000 pickup units, ICW estimates the potential for rent-seeking reaches between Rp 4.86 trillion and Rp 5.54 trillion. “Overall, ICW’s findings indicate that the procurement of KDMP pickup trucks potentially fails to meet the principles of transparency, accountability, efficiency, and fair business competition,” ICW stated. Finance Minister Purbaya Yudhi Sadewa admitted he does not yet have the data from ICW’s findings. Purbaya is currently awaiting the audit results for the pickup truck procurement. “It will be audited. Once it is audited and passes, then they can bill me, and I will pay. So I am secure, it is safe,” Purbaya said. As additional information, PT Agrinas Pangan Nusantara imported 105,000 commercial vehicles worth Rp 24.66 trillion from India. The contract covers the procurement of a total of 105,000 vehicle units from two Indian automotive manufacturers. A total of 35,000 Scorpio Pickup units are supplied by Mahindra, while the remaining 70,000 units come from Tata Motors, consisting of 35,000 Yodha Pickup units and 35,000 Ultra T.7 Light Truck units. The President Director of PT Agrinas Pangan Nusantara, Joao Angelo de Sousa Mota, explained that the company submitted a bulk purchase offer. He argued that purchasing in large quantities should be rewarded with a more economical and effective price in line with the state budget. According to him, only Indian manufacturers agreed to this procurement. Local manufacturers, which have long dominated the Indonesian market, were reportedly unwilling to provide such price flexibility. “They tend to feel that bulk buying does not exist for them, the price remains per unit. I think that is not fair,” Joao asserted. Because local manufacturers insisted on the standard market pricing scheme (per unit), his party sought alternatives abroad. India, through Tata Motors and Mahindra, presented a more reasonable offer for the Red and White Village Cooperatives project budget. This import decision ultimately became the last resort that had to be taken.