Indonesian state-run firm to buy 320,000 vehicles for its cooperative programme, CEO says

Core Insights - Indonesia's state-led Agrinas Pangan Nusantara is negotiating to purchase 160,000 trucks and motorbikes as part of a $12 billion program to establish cooperative markets across the country, aimed at stimulating local businesses [1][4]. Group 1: Vehicle Purchases - The program includes a deal to buy 35,000 six-wheeler trucks from local partners of Japanese automakers Mitsubishi and Isuzu, with Mitsubishi providing up to 20,000 units and Isuzu up to 15,000 units [2][3]. - Additional trucks may be imported from suppliers such as China's Dongfeng Motor Group and India's Tata Motors, with discussions ongoing for 80,000 4x4 vehicles from Isuzu, Tata Motors, and Mahindra [3]. Group 2: Economic Impact - The cooperative program aims to enhance economic activities in villages, targeting an 8% GDP growth by 2029, up from the current 5% [4]. - The construction of cooperative markets is designed to eliminate middlemen, allowing farmers and small enterprises to sell directly to consumers [5]. Group 3: Logistics and Support Services - Motorbike-pulled carts will be sourced from various brands, including TVS Motor Company and Viar Motor Indonesia, to transport products to customers, aiming to reduce logistics costs and enable producers to offer competitive prices [6]. - The program will also provide microloans, health clinics, cold storage for meat, and subsidized medicines and staple foods [5]. Group 4: Financing - The $12 billion for the cooperative initiative will be financed through loans from state banks, including Bank Mandiri, Bank Rakyat Indonesia, and Bank Negara Indonesia, with government guarantees [7].