Toyota Admits It Was Asked to Discuss Pickup Procurement by Agrinas

JAKARTA, KOMPAS.com – Toyota Indonesia has acknowledged that it previously discussed with PT Agrinas Palma Nusantara (Persero) the plan to procure a large fleet of commercial vehicles to support the Merah Putih Desa/Kelurahan Cooperative Programme (KDKMP). The programme is reported to require around 105,000 operational vehicles in the form of pickups and light trucks to support the distribution of agricultural produce across Indonesia.

However, according to Jap Ernando Demily, Marketing Director of PT Toyota Astra Motor (TAM), the collaboration did not materialise between the two parties. He said there were several factors that prevented the talks from continuing, ranging from vehicle specifications to price.

“Why could we not fulfil it? One reason is the type of vehicles and the price. We could not agree on those terms,” he said.

Additionally, the cost structure of vehicles in Indonesia was another important consideration in the discussions. He cited the price of the Toyota Hilux Double Cab, which on the road (OTR) is around Rp 456 million.

He also added that four‑wheel drive pickups (4x4) in Indonesia are subject to relatively high taxes because under the regulations they are still categorised as vehicles that could be used for personal needs. “If you look at field use, they are more often used as work tools. That is also one of the reasons why the structural alignment could not be achieved,” Demily said.

Meanwhile, Nandi Julyanto, President Director of PT Toyota Motor Manufacturing Indonesia (TMMIN), believed that domestic manufacturers actually have the opportunity to meet the operational vehicle needs in such a large project. However, he warned that local production, especially under the completely knocked down (CKD) scheme, requires preparation time as well as calculations of economies of scale.

“When we talk about CKD or local production, it takes time, volume and economies of scale. Indeed 105,000 units is a large figure, but we also have to look at timing,” he said.

Under the plan, the state-owned enterprise would import 105,000 vehicles from Indian auto manufacturers. 70,000 units would be supplied by Tata Motors, comprising 35,000 Tata Yodha pickups and 35,000 Tata Ultra T.7 light trucks. Meanwhile Mahindra & Mahindra is said to supply 35,000 Mahindra Scorpio 4x4 Pickups to complete the operational vehicle needs of the programme.