Bambang Ismoyo, Jakarta – Indonesia's coach building industry is sounding the alarm over a surge of completely built-up (CBU) truck imports from China, warning that the influx is eroding opportunities for domestic manufacturers and sole brand agents.

Sommy Lumajeng, Board Member and Chairman of the Supervisory Board of the Indonesian Coachbuilder Association (Askarindo), said on Tuesday that the unchecked entry of Chinese trucks, often under favorable import schemes, is hitting both brand holders selling chassis and local coachbuilders.

"Uncontrolled imports, combined with the use of masterlists and other facilities, have the potential to erode the market share of local industries," Sommy said. "The impact is felt by both chassis sellers and coachbuilding businesses."

Under Indonesia's master list import scheme, certain goods, including capital equipment, raw materials, or machinery, can enter the country without import duties or specific taxes as part of investment incentives. Many of the Chinese trucks arriving fall under this classification, granting them a price advantage over locally assembled vehicles.

Sommy noted that the lower cost of Chinese trucks has made them particularly attractive to mining companies, which often opt for more economical options over locally built models.

He urged the government to introduce protective measures to safeguard domestic players in the coachbuilding, truck assembly, and sole brand agent sectors.

Sommy also called on mining and industrial companies to prioritize vehicles with a high Domestic Component Level (TKDN) to help stimulate Indonesia's economy and strengthen its manufacturing base.

"We need the government to step in and address this matter so that local companies, at the very least, are somewhat protected by their presence," he concluded.

Source: https://jakartaglobe.id/business/indonesias-truck-makers-sound-alarm-over-dutyfree-chinese-import