Jakarta – The procurement of 105,000 commercial vehicles for the Merah Putih Village/Sub-district Cooperative (Kopdes Merah Putih) will not be limited to imports alone. PT Agrinas Pangan Nusantara confirmed that its cooperation contract with an Indian automotive principal requires the construction of a factory and after-sales service infrastructure in Indonesia.
Agrinas President Director Joao Angelo De Sousa Mota stated that the collaboration with Mahindra and Tata Motors stipulates a medium- to long-term investment commitment. He stated that this obligation is an integral part of the agreement to procure operational vehicles for village cooperatives.
“They want to start production in Indonesia soon. The contract states that they must start production in Indonesia between 2027 and 2028,” Joao said.
Mahindra is reportedly exploring Subang, West Java, as a location for a production facility. The company is also starting to build a network of workshops and distributors in various regions to ensure the readiness of after-sales services.
“Yes, investment commitment, besides building factories, now he is building workshops throughout Indonesia, and distributors,” said Joao.
Meanwhile, Tata Motors is also required to build an assembly facility in Indonesia, with a target of operations in 2029. Joao emphasized that every vehicle unit sold is accompanied by a guarantee of spare parts supply and the development of a service network.
“The presence of Tata and Mahindra, two of the world’s most resilient and large industries, always precedes the sale of cars by supplying spare parts. This is followed by preparations to open repair shops throughout their population,” he said.
A total of 105,000 vehicles will be distributed to support 30,712 village cooperatives across Indonesia, with a procurement value reaching Rp 24.66 trillion. The procurement includes 35,000 Scorpio pickup trucks from Mahindra, 35,000 Yodha pickup trucks, and 35,000 Ultra T.7 light trucks from Tata Motors.
Joao emphasized that imports were initially intended to meet the needs of the Red and White Village Cooperative Program. However, the scheme is tied to mandatory domestic industrial investment, thus strengthening the national automotive production base and ecosystem.
The procurement of Red and White Kopdes vehicles is not only oriented towards providing an operational fleet, but is also directed at encouraging the development of manufacturing facilities, workshop networks, and the distribution of spare parts throughout Indonesia, which will certainly encourage technology transfer and open up new job opportunities. #