JAKARTA: Indonesia's state-led Agrinas Pangan Nusantara is negotiating the purchase of 160,000 trucks and as many motorbikes to kick off a US$12 billion programme to build cooperative markets across the archipelago, CEO Joao Mota told Reuters on Thursday (Nov 20).
The vehicles are a part of President Prabowo Subianto's plan, launched in July, to establish 80,000 cooperatives to stimulate local businesses. The large-scale purchases are a boost for the country's flagging auto industry, with monthly car sales in contraction since May 2025.
The previously unreported purchase plan includes a soon-to-be-signed deal to buy 35,000 six-wheeler trucks from local partners of Japanese automakers Mitsubishi Fuso Truck and Bus and Isuzu, Joao said in an interview at his office.
"Mitsubishi can provide up to 20,000 units, while Isuzu up to 15,000 (six-wheeler) units," Joao said, adding that 45,000 more trucks might be imported from potential suppliers such as China's Dongfeng Motor Group and Indian firm Tata Motors.
He said his firm is also in talks with Isuzu, Tata Motors and Mahindra for purchases of 80,000 4x4 vehicles.
Local representatives from Mitsubishi Fuso, majority owned by Daimler Truck, and Isuzu as well as Tata, Dongfeng and Mahindra did not respond to an email request for comments.
The cooperative programme aims to boost economic activities in villages as the administration targets 8% GDP growth by 2029 from 5% currently.
The construction of these markets aims to cut out middlemen by allowing farmers and other small and medium enterprises to sell products directly to customers.
The programme will include several other services, such as providing microloans, opening and operating small health clinics, cold storage for meat, and selling subsidised medicines, staple foods and cooking gas.
Motorbike-pulled carts, which will be used to transport the cooperatives' products to end-customers, are expected to be sourced from many brands, including Indian automaker TVS Motor Company and local brand Viar Motor Indonesia.
"Our main goal is to cut logistics costs... this will enable people to produce things at a competitive price; they are no longer consumers, but becoming producers," Joao said, adding they are in talks with German software maker SAP and Indonesian telco firm Telkomsel to set up the cooperatives' IT system and e-commerce platform to market the farmers' products.
The $12 billion used for the cooperatives' construction and vehicle purchases will come in loans from all of the state banks, including Bank Mandiri, Bank Rakyat Indonesia and Bank Negara Indonesia, the finance ministry has said. The loans will then be guaranteed by the government. - Reuters
