Toyota Reveals the Reason for Failing to Agree on the Procurement of 105 Thousand Cooperative Vehicles

JAKARTA - PT Agrinas Pangan Nusantara (Persero) had a discussion with Toyota Indonesia regarding the procurement of 105,000 commercial vehicles, which were indeed intended for the Red and White Village/Neighborhood Cooperative Program (KDKMP).

This was revealed by the Director of Marketing of PT Toyota Astra Motor (TAM) Jap Ernando Demily. He said that after the meeting, no agreement was reached because of several things.

"Why can't we fulfill the decision, I'm sorry, one of them is the type of vehicle, the price, we didn't find it," he said, while breaking the fast together in Jakarta, some time ago.

In addition, there are several things that are indeed being discussed including the cost structure of purchasing vehicles. Especially 4x4 pickup vehicles.

"For example, the Hilux double cabin, around Rp. 456 million. But in the on-the-road price there are many components, ranging from vehicle prices, luxury goods taxes, name back taxes, and so on," he added.

According to him, 4x4 pickups in Indonesia are taxed quite high because according to regulations they are categorized as vehicles that can be used for personal purposes.

"In fact, if we look at what is happening in the field, it is more used for work tools, that is also one of the reasons why, in terms of structure, we cannot be in line," he explained.

On the same occasion, President Director of PT Toyota Motor Manufacturing Indonesia (TMMIN) Nandi Julyanto, revealed that local manufacturers could possibly fulfill vehicle orders for KDKMP operations if the project is realized.

"If we talk about CKD or local production, it takes time, needs sufficient volume and economic scale. Indeed, 105 thousand units is a large number, but we must also look at timing," said Nandi Julyanto.

As is known, PT Agrinas Pangan Nusantara (Persero) plans to import 105,000 vehicles from Indian manufacturers. A total of 70,000 commercial vehicles will be purchased from Tata Motors, which provides 35,000 Tata Yodha pickups and 35,000 Tata Ultra T.7 light trucks. Mahindra & Mahindra, another Indian company, will supply 35,000 units of Mahindra Scorpio Pickup.