Alfi Dinilhaq, Heru Andriyanto, Jakarta – Calls are mounting for the Indonesian government to cancel plans to import 105,000 pickup trucks for rural cooperatives, amid concerns the move could undermine the domestic automotive industry, which executives say is capable of supplying the vehicles locally.
Saleh Husin, vice chairman of the Indonesian Chamber of Commerce and Industry (Kadin), said the group has asked President Prabowo Subianto to scrap the proposal following consultations with automotive manufacturers and industry associations.
"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.
He warned that importing fully built-up (CBU) vehicles risks eroding the competitiveness of local manufacturers while delivering limited economic benefit at home. Domestic automakers, he said, have already expressed readiness to supply vehicles for the government's rural cooperative initiative under Prabowo's flagship Koperasi Merah Putih program.
The proposed imports – valued at an estimated Rp 25 trillion ($1.5 billion) – were first disclosed by Joao Angle De Sousa Mota, president director of state-owned Agrinas Pangan Nusantara.
Saleh stressed that the import policy should align with the government's industrialization agenda, which prioritizes job creation and higher domestic value-added.
"Importing CBU vehicles is effectively killing a domestic automotive industry that is still growing," he said.
Indonesia's auto sector, he added, has the capacity to produce hundreds of thousands of pickup trucks annually, though factory utilization remains below potential. Local content in domestically assembled pickups already exceeds 40%, supported by a nationwide after-sales service network.
"From an industrial policy perspective, the government must be careful that efforts to develop village cooperatives do not end up weakening utilization at local auto plants," Saleh said.
As an alternative, he urged authorities to prioritize vehicles with high local content, promote domestic assembly, and expand manufacturing partnerships within Indonesia.
Agrinas is reportedly planning to import 35,000 four-wheel-drive pickups from Mahindra & Mahindra Ltd., another 35,000 4x4 pickups from Tata Motors, and 35,000 six-wheel trucks from the same manufacturers, with deliveries scheduled in stages throughout 2026.
Separately, Putu Juli Ardika, chairman of the Indonesian Automotive Industry Association (Gaikindo), said at least six automakers operating assembly plants in Indonesia could meet the new pickup demand if given sufficient lead time.
"Gaikindo members and our auto parts partners have the capacity to supply these pickups, but of course we need time to do so," Juli said on Friday.