The Indonesian government is signaling a potential shift towards utilizing domestically produced vehicles to fulfill the operational demands of the Koperasi Desa Merah Putih (KDMP). This significant policy consideration arises amid existing plans to import 105,000 pick-up trucks from India, originally intended to bolster the cooperative’s activities. This evolving stance underscores a growing emphasis on empowering local industries.
This new direction finds strong support from Finance Minister Purbaya Yudhi Sadewa, who has aligned himself with the views of Deputy Speaker of the House of Representatives, Sufmi Dasco Ahmad. Dasco had previously urged for a postponement of the planned vehicle imports. Minister Purbaya explicitly stated his adherence to Dasco’s position, highlighting the critical need to thoroughly assess the capabilities and readiness of the national automotive industry.
“Mr. Dasco made a comment yesterday, and we will simply follow Mr. Dasco,” Purbaya told reporters at his office on Tuesday, February 24th, signaling the government’s responsiveness to parliamentary concerns. This immediate agreement reflects a unified front in re-evaluating the procurement strategy.
Furthermore, Minister Purbaya emphasized that President Prabowo Subianto maintains a clear and unwavering commitment to strengthening and promoting domestic industry. He asserted that the President’s policy direction is unequivocally geared towards supporting national production, aligning seamlessly with the sentiment for local empowerment. “If, in my opinion, the President’s objective is also to stimulate domestic industry, then I believe the President’s position on this is clear,” he added, reinforcing the overarching economic vision.
Earlier, Deputy Speaker Dasco revealed that President Prabowo intends to gather insights from various stakeholders to comprehensively evaluate the capacity of domestic companies to manufacture the 105,000 pick-up units initially slated for import from India. This crucial evaluation aims to ascertain the true production capabilities and overall readiness of the nation’s industrial sector to meet such a substantial demand.
Beyond the assessment, Dasco also advocated for an immediate postponement of the import plan itself. He deemed the delay essential, particularly as President Prabowo Subianto is currently engaged in an overseas visit, suggesting that such a pivotal decision warrants the President’s direct involvement upon his return. “Certainly, the President will discuss the details concerning the import upon his return,” Dasco affirmed, indicating that a final decision is pending presidential review.
Providing context to the original import proposal, two prominent Indian automotive companies, PT Tata Motors and Mahindra Ltd, had previously announced their intention to supply the aforementioned 105,000 pick-up vehicles. These units were earmarked for the state-owned enterprise PT Agrinas Pangan Nusantara, with the ultimate goal of supporting the vital operations of the KDMP.
Specifically, Tata Motors was poised to deliver 35,000 units of the Yodha pick-up and an additional 35,000 units of the T.7 truck through its subsidiary, PT Tata Motors Distribusi Indonesia. The remaining 35,000 pick-up units were planned to be sourced from Mahindra & Mahindra Ltd, outlining a detailed procurement strategy that is now subject to governmental reconsideration in favor of local manufacturing.
Summary
The Indonesian government is considering postponing the import of 105,000 pick-up trucks from India, originally intended for Koperasi Desa Merah Putih (KDMP), to instead utilize domestically produced vehicles. Finance Minister Purbaya Yudhi Sadewa supports this delay, aligning with Deputy Speaker Sufmi Dasco Ahmad’s call to assess the national automotive industry’s capabilities. This evolving stance underscores President Prabowo Subianto’s clear commitment to strengthening domestic industries.
President Prabowo plans to gather insights from stakeholders to evaluate local companies’ capacity to manufacture the required units, while Dasco also advocated for an immediate postponement of the import plan until the President’s return for a final review. Previously, Indian automotive companies PT Tata Motors and Mahindra Ltd were set to supply these vehicles to PT Agrinas Pangan Nusantara.