Row Over Import of 105,000 Indian Pickup Trucks; Agrinas Claims 46.5 Trillion Rupiah Savings, Parliament Requests Fresh Review

Jakarta — The decision by PT Agrinas Pangan Nusantara (a state-owned enterprise) to import 105,000 vehicles from India for the operations of the Red and White Village Cooperative (KDKMP) has triggered widespread debate. On one hand, the company claims the measure will save the state budget up to 46.5 trillion rupiah; on the other hand, critics argue the policy runs counter to efforts to strengthen Indonesia’s domestic industry.

The import comprises 35,000 units of 4x4 pickup trucks from Mahindra & Mahindra Ltd., 35,000 units of 4x4 pickup trucks from Tata Motors, and 35,000 units of six-wheeled trucks from Tata Motors.

Agrinas Pangan Nusantara Chief Executive Officer Joao De Sousa Mota stressed that the decision was made considering price and production capacity factors.

“First, there is the issue of price. Products available from any supplier in the Indonesian market are very expensive, especially 4x4 models,” said Joao when met by Kompas.com at his Jakarta office on Friday, 20 February 2026.

“So by sourcing from India, we are taking a middle path. It is fair for us to use state budget funds wisely,” he explained.

“We are buying at prices almost half cheaper than products currently available in the Indonesian market,” he added.

He noted that if the procurement were conducted through the government’s e-catalogue system, the total budget requirement for the Red and White Cooperative’s infrastructure and equipment needs could reach 121 trillion rupiah. Through direct purchasing from manufacturers, Agrinas claims to achieve efficiency savings of 46.5 trillion rupiah.

“With this infrastructure and equipment procurement, Agrinas Pangan can achieve efficiency savings of 46.5 trillion rupiah,” said Joao during a press conference at Agrinas’s Jakarta office on Tuesday, 24 February 2026.

For the light truck segment, Mitsubishi Fuso is cited as having production capacity of 20,600 units, Foton through Aumark 13,500 units, Hino 10,000 units, and Isuzu through Canter 900 units.

However, total qualifying production capacity only reaches 45,000 units. Regarding single cabin 4x4 pickup trucks, Joao noted that none are currently produced in Indonesia.

“To date, we have not received or been given the opportunity to offer special pricing so we have been forced to proceed with imports from abroad,” he said.