‘Killing auto industry’: Indonesia government faces pushback on US$2.4 billion Indian trucks import
CNA
The 105,000 trucks are to support the government’s cooperative programme - a flagship initiative of Indonesia President Prabowo Subianto aimed at strengthening rural supply chains and advancing food security.
JAKARTA: Indonesia’s move to import up to 105,000 pickup trucks from India in support of President Prabowo Subianto’s plan to help rural communities through the Red-White village cooperative has sparked mounting political resistance and industry disquiet.
Opponents flag concerns that the imports could undermine the domestic automotive industry, even as the state-owned firm behind the 40 trillion rupiah (US$2.38 billion) procurement insists it had acted lawfully and in the national interest.
The orders - made to two different Indian firms - were by state-owned enterprise Agro Industri Nasional (Agrinas), which was formed last year to support food, energy and water security in the archipelago.
Agrinas said the trucks would support the government’s cooperative programme - known locally as Koperasi Desa Merah Putih - a flagship initiative of Prabowo’s government aimed at strengthening rural supply chains and advancing food security.
The president has made it his vision for Indonesia to become food self-sufficient within four or five years from his inauguration in October 2024.
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