Jakarta. The chief executive of state-owned agribusiness firm Agrinas Pangan Nusantara on Tuesday defended plans to import 105,000 pickup trucks from India, saying domestic manufacturers cannot supply four-wheel-drive vehicles at affordable prices and in the volumes required.

Joao Angelo De Sousa Mota said the procurement from India would also save Rp 46.5 billion ($2.8 million) compared with rival bids. He added that opposition to the plan largely came from business groups whose interests were threatened by the imports.

The roughly $1.5 billion vehicle purchase — covering pickups and light trucks — is intended to equip thousands of newly launched rural cooperatives called Koperasi Merah Putih aimed at reviving village-level economic activity and spreading prosperity more evenly across the country.

Joao said the procurement process was conducted openly and fairly, and that no regulations had been violated.

“If there is anything unusual about this procurement, it’s that the price we obtained is far below what is typically paid by other institutions,” he told reporters at Agrinas’s Jakarta office.

He said Agrinas supports prioritizing vehicles assembled in Indonesia, but acknowledged that no 4x4 pickup models are fully produced domestically.

“I agree that we should prioritize local companies. But there is not a single 4x4 model manufactured in Indonesia — those currently available are 100% imported from Thailand,” Joao said.

The four-wheel-drive specification was required because most vehicles will be used by rural cooperatives operating in remote areas and difficult terrain, where standard pickups and light trucks are often insufficient.

Joao said the tender process began on Oct. 14, 2025, and closed on Dec. 23. Brands participating in the pickup bidding included Toyota Hilux, Isuzu, Mahindra, and Triton, while bids for six-wheel trucks came from Isuzu, Hino, and Foton.

Agrinas ultimately selected India’s Mahindra & Mahindra and Tata Motors as suppliers.

According to Joao, Indonesia’s current production capacity for suitable vehicles stands at around 45,000 units per year, well short of Agrinas’s requirement of 105,000 units — a gap he said made overseas sourcing unavoidable.

Pricing was another key factor. Joao said domestic producers did not offer special pricing or bulk discounts despite the large order volume.

“If we can get something stronger and cheaper, why should we buy something weaker and more expensive?” he said.

Amid mounting criticism, Joao said the backlash reflected concerns from parties who felt their market share was being disrupted.

“I think this is a breakthrough that makes some people feel their slice of the pie is being affected by our imports,” he said.

Still, he stressed that the policy’s main goal is to provide more competitive and rational options for consumers.

“In the end, the choice belongs to the public — to decide which product offers the best value for their money,” Joao said.