Jakarta. Indonesian lawmakers have summoned state-owned agribusiness firm Agrinas Pangan Nusantara to explain its $1.5 billion plan to import 105,000 completely built-up (CBU) pickup trucks and light trucks from India, raising concerns over transparency and parliamentary oversight.

Herman Khaeron, a senior member of Commission VI — which oversees trade, competition, and state-owned enterprises — said the large-scale import plan was never formally disclosed during the commission’s most recent hearing with Agrinas.

“At that time, Agrinas only presented a plan to provide transportation support for tens of thousands of Merah Putih rural cooperatives, but without clear details,” Herman told reporters at the parliamentary complex on Thursday.

He said Agrinas had outlined a Rp 3 billion allocation per village cooperative, with Rp 1.6 billion earmarked for building facilities and Rp 500 million for working capital. The remaining funds were described as support infrastructure, including transportation.

“They never specified what type of vehicles would be procured or what specifications were required,” Herman said.

Commission VI was taken aback when it later learned that Agrinas intended to spend Rp 24.66 trillion to import 105,000 pickup trucks from India.

“This is a very large budget. It should have been discussed first in the DPR to uphold the principles of transparency and accountability in state finances, in an open session for the public,” Herman said.

“Because this has become a public issue, Commission VI has a duty to summon Agrinas and demand a full explanation.”

The imports are intended to supply the government’s newly launched Merah Putih rural cooperatives program, designed to boost economic activity in villages nationwide.

Previously, Agrinas president director Joao Angelo De Sousa Mota defended the procurement, saying Indian manufacturers Mahindra & Mahindra and Tata Motors were selected because they could meet the required four-wheel-drive specifications, deliver the full order volume, and offer the most competitive pricing.

Joao argued that other manufacturers do not assemble 4x4 models in Indonesia either and were unable to meet the required quantity due to production constraints, while offering higher prices.

Add as a preferred source on Google +