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s part of a pro-people, economic program, the government will next year introduce “cheap” pickups especially designed to support transportation in rural areas, Industry Minister M.S. Hidayat said in Jakarta on Thursday.

Hidayat said the pickups, each of which will have an engine capacity of 700 cc, would be specially sold to farmers at a price of about Rp 60 million (US$6,600).

Hidayat said a prototype was ready and would be displayed before President Susilo Bambang Yudhoyono at the State Palace in January. “The trucks will enter display rooms early next year,” the minister said after addressing a seminar on the outlook of industrial activities.

The minister said the vehicles would be produced by state owned train-carriage maker PT Industri Kereta Api Indonesia (INKA). “The production of these vehicles is closed to foreign investment and the components will be locally manufactured,” he said.

Meanwhile, INKA president director Roos Diatmoko said in Jakarta on Thursday that the company would, in an initial stage, produce 45 low-cost pickups next year. “These 45 pickups will be sold to farmers in South Sulawesi,” he said, adding that the pilot project would be followed by larger-scale production in 2013.

“Each pickup will have an engine of 700 cc and a 22-liter fuel tank. Each one will be sold at a price of between Rp 50 million and Rp 55 million,” he told The Jakarta Post over the phone.

Hidayat said South Sulawesi was chosen as the first distribution area upon a request from the local administration. “I hope the pickups can help farmers transport from one place to another,” he said.

Roos said that in 2013, the company would produce 2,000 pickups to be distributed to other regions.

“Currently, we are still preparing a prototype for mass production, a factory and sales center or centers for distribution,” he said.

Recently, the vehicles were presented before the Coordinating Economic Minister Hatta Rajasa and, according to Hidayat, Hatta supported the trucks’ production.

Hidayat said besides INKA, other local companies would also participate in the production of the cheap vehicles.

He said the trucks would be sold to local governments, which would then distribute the pickups to farmers in their respective provinces.

“The program’s payment mechanism will be decided soon by the Finance Ministry,” he said.

The low-cost vehicle program for farmers living in villages or remote areas is one of the Industry Ministry’s “pro-poor” programs that have been earmarked for 2011 to 2012. Other pro-poor programs include one on providing low-price electricity through energy-saving lamps. (fem)