double-skinned crabsVietnamese crab exportergood crabexellent crab

Indonesia Receives First 1,000 Indian Pickup Trucks Under $1.5 Billion Agrinas Deal

Akmalal Hamdhi, Heru Andriyanto
February 24, 2026 | 11:38 pm
SHARE
This undated photo from Mahindra Indonesia's website shows two Scorpio pickup trucks at the company's dealership in Balikpapan, East Kalimantan. (Courtesy of Mahindra Indonesia via JG)
This undated photo from Mahindra Indonesia's website shows two Scorpio pickup trucks at the company's dealership in Balikpapan, East Kalimantan. (Courtesy of Mahindra Indonesia via JG)

Jakarta. Indonesia has received its first shipment of around 1,000 pickup trucks from Indian automakers Mahindra & Mahindra and Tata Motors, marking the start of deliveries under a controversial $1.5 billion vehicle procurement program, a business executive said on Tuesday.

The vehicles are part of a broader order of 105,000 pickups and trucks imported as completely built-up units by state-owned agribusiness firm Agrinas Pangan Nusantara. The fleet is intended to support tens of thousands of rural cooperatives launched by the government earlier this year.

The imports have drawn widespread criticism from lawmakers, automotive industry groups, and analysts, who argue the program sidelines domestic assembly plants and violates minimum local-content requirements.

ADVERTISEMENT

Agrinas CEO Joao Angelo De Sousa Mota said shipments began after the company paid about 30% of the total contract value.

He rejected claims that Agrinas ignored domestic manufacturers, saying the tender required four-wheel-drive specifications that local producers could not meet at competitive prices or in sufficient volumes following an open bidding process.

“So I think sourcing these vehicles from India is fair. We gave everyone the opportunity, and it turned out our domestic producers simply could not deliver,” Joao said.

Indonesia Receives First 1,000 Indian Pickup Trucks Under $1.5 Billion Agrinas Deal
Joao Angelo De Sousa Mota, CEO of state-owned agribusiness firm Agrinas Pangan Nusantara, speaks in a news conference at his office in Jakarta, Tuesday, Feb. 24, 2026. (B-Universe Photo/Akmalal Hamdhi)

During the procurement process, Agrinas invited several manufacturers to participate. For pickups, bidders included Toyota Hilux, Isuzu, Mahindra, and Mitsubishi, while six-wheel truck tenders involved Isuzu, Hino, and Foton.

Joao said negotiations showed domestic suppliers could provide only about 45,000 units in total — including 20,600 Mitsubishi Fuso trucks, 13,500 Foton Aumark units, 10,000 Hino trucks, and just 900 Isuzu Canters — far short of Agrinas’s 105,000-unit requirement.

The supply gap ultimately led Agrinas to source vehicles from India, he said.

Pricing also played a decisive role. Joao said manufacturers with factories in Indonesia failed to offer competitive terms despite the large order volume.

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

Earlier this month, Mahindra announced it had secured an order for 35,000 single-cab Scorpio pickup trucks from Agrinas — described as the largest export order in the company’s history, surpassing Mahindra’s total vehicle exports for all of 2025.

Under the partnership, Mahindra and Agrinas aim to equip rural cooperatives “with robust, reliable vehicles to ensure effective and seamless flow of fresh supplies from farmers directly to the marketplace,” helping villages become independent centers of economic growth.

“The volume committed for this partnership will significantly boost our international operations, adding as much as our total export volumes achieved in FY2025,” said Nalinikanth Gollagunta, chief executive of Mahindra & Mahindra’s automotive division.

Agrinas has secured Rp 200 trillion in financing from state-owned banks to support the development of 80,000 rural cooperatives. So far, Rp 90 trillion has been disbursed, with more than 30,000 village cooperatives already established or currently in formation across Indonesia.

Tags: Keywords:
Google Add Investor.id as a preferred source on Google +
SHARE

Related Articles


News Sep 23, 2026 | 9:41 pm

Agrinas Clarifies Employment Status of Merah Putih Cooperative Managers

Agrinas says Merah Putih cooperative managers are its employees under two-year contracts as the cooperatives prepare to begin operations.
News Jul 20, 2026 | 1:22 pm

Govt Targets Completion of 35,872 Village Cooperatives by August

Indonesia aims to complete 35,872 village cooperatives by August as the government prepares them to distribute subsidies and support farmers
Business Jul 16, 2026 | 8:17 pm

State Banks to Lend Rp 240 Trillion for Indonesia's Village Cooperatives

State-owned banks will provide Rp 240 trillion in financing for Indonesia's Red-and-White Village Cooperatives.
Business Jul 13, 2026 | 10:04 pm

Red-and-White Cooperatives to Combine Microfinance, Retail and Healthcare

Indonesia plans to expand village cooperatives into hubs offering microfinance, retail, and healthcare services nationwide.
News Jun 24, 2026 | 7:03 pm

Indonesia to Continue Village Cooperative Program After Trainee Deaths

Indonesia will continue its village cooperative program while reviewing military training after two trainee deaths.

The Latest


Lifestyle 3 hours ago

Ye Concert, Other Events to Draw 130,000 to GBK, Here’s What to Know

Around 130,000 visitors are expected at Jakarta’s GBK on Saturday as Ye’s concert and several major events take place.
Business 3 hours ago

Indonesia Allocates Rp 722 Billion for Year-End Flight Ticket Tax Relief

Indonesia allocates Rp 722 billion to cover domestic flight ticket VAT during the 2026/2027 Christmas and New Year holidays.
Business 5 hours ago

Greece Floats Shipbuilding Partnership with Indonesia

Greece says that it possesses “extensive expertise” as it woos Indonesia in shipbuilding partnership.
Business 6 hours ago

Indonesian Stocks Rally 4.9%, but Foreign Investors Keep Selling

Indonesia’s JCI rose 4.9% last week, but foreign selling and MSCI downgrade risks continue to cloud the market outlook.
Lifestyle 18 hours ago

Ye Concert in Jakarta to Deploy 2,000 Security Personnel

More than 2,000 personnel will secure Ye’s Jakarta concert on Saturday, as organizers urge fans to use public transport.
COPYRIGHT © 2026 JAKARTA GLOBE. ALL RIGHTS RESERVED