Local trade bodies in Indonesia are urging the government to cancel plans to import 105,000 pickup trucks from India for its rural cooperatives programme. They say it is of limited economic benefit and the government should buy from local industry, which would ensure local jobs and keep money from going outside the country.
The vice chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Saleh Husin, warned that importing fully built-up (CBU) vehicles risks undermining Indonesia’s domestic automotive ecosystem.
“After hearing feedback from industry players, we are urging President Prabowo to cancel the plan to import 105,000 commercial vehicles,” Saleh said in a statement on Sunday.
Last week, the state-owned agricultural enterprise PT Agrinas Pangan Nusantara had teamed up with Indian automotive manufacturers Mahindra & Mahindra and Tata Motors to acquire 105,000 vehicles for the government’s Red and White Rural Cooperatives (KDMP) initiative.
Reports say Agrinas is planning to import 35,000 Yodha pickups and 35,000 Ultra T.7 light trucks from Tata Motors, and 35,000 Scorpio pickups from Mahindra, when domestic car makers say they are willing to supply those vehicles. They said that prioritising local production would strengthen supply chains, protect jobs, and ensure that economic value remains within the country.
Husin said that Indonesia’s automotive industry is capable of producing hundreds of thousands of pickup trucks each year, although plant utilization is still below its full potential. Domestically assembled pickups already contain more than 40% local content and are backed by a nationwide after-sales service network.
Industry Minister Agus Gumiwang Kartasasmita also raised economic risks, warning that “if all pickup vehicle needs are met through imports, the economic value added and job creation will be enjoyed by industries abroad.” He emphasised that domestically produced trucks meet international standards and could help sustain local supply chains.
Critics also warn of broader impacts. A local economic think tank estimated the imports could cost the economy up to Rp 39 trillion in lost output and potentially put hundreds of thousands of jobs at risk in the domestic auto sector.
Lawmakers said the import plan appears inconsistent with President Prabowo Subianto’s commitment to industrial independence, noting that government officials have been encouraged to use locally made vehicles.
