Indonesia has temporarily postponed a plan to import more than 100,000 vehicles from India under a state-backed rural development programme, according to a report by Bloomberg.
Citing statements from senior officials, Bloomberg reported that the Indonesian government is reassessing the proposed import of 105,000 pickup trucks and vans for the Merah Putih Village Cooperative programme, amid concerns about the potential impact on domestic industry.
Minister of Finance Purbaya Yudhi Sadewa said he agreed with a proposal from Deputy Speaker of Parliament Sufmi Dasco Ahmad to delay the import plan. The decision comes while President Prabowo Subianto is on an overseas working visit. According to Bloomberg, Purbaya indicated that the President has a clear position on the matter and is keen to prioritise domestic industrial development.
The planned imports were to be executed by state-owned PT Agrinas Pangan Nusantara. Earlier this month, India’s Mahindra & Mahindra Ltd. (M&M) disclosed on its website that it would supply 35,000 units of its Scorpio pickup to Indonesia as part of the programme.
Subsequently, Agrinas Pangan Nusantara President Director Joao Angelo De Sousa Mota confirmed to local media that the company intended to import a total of 105,000 vehicles from Indian manufacturers. The plan included 35,000 units of 4x4 pickup trucks from M&M, an additional 35,000 units of 4x4 pickups, and 35,000 six-wheel trucks from Tata Motors, Bloomberg reported.
However, Joao said the company is prepared to comply with Parliament’s request to defer the imports. He added that any vehicles already shipped to Indonesia would remain idle pending formal government direction on their deployment or distribution, according to Bloomberg.