Indonesia Delays Import of 105,000 Pickups from India for Kopdes Merah Putih

JAKARTA – Plans for a substantial import of pickup trucks from India to support Indonesia’s village cooperatives are facing increasing scrutiny and potential delay, as domestic manufacturers and lawmakers raise concerns about the impact on the national automotive industry. PT Agrinas Pangan Nusantara, the state-owned enterprise tasked with developing infrastructure for the Kopdes Merah Putih (Red and White Cooperatives), has indicated a willingness to postpone the purchase of 105,000 vehicles, valued at Rp 24.66 trillion (approximately $1.5 billion).

The shift comes after Deputy Speaker of the House of Representatives, Sufmi Dasco Ahmad, publicly urged a reconsideration of the import plan. Joao Angelo De Sousa Mota, CEO of Agrinas, stated the company would “follow” any decision made by authorities, emphasizing their commitment to serving the nation and its communities.

Agrinas had already signed contracts with Indian manufacturers Mahindra &amp. Mahindra (M&M) Ltd and Tata Motors for the vehicles. The agreement included 35,000 four-wheel-drive pickups from Mahindra, and a further 70,000 units – 35,000 four-wheel-drive pickups and 35,000 six-wheel trucks – from Tata Motors. As of February 23, 2026, 200 Mahindra pickups had already arrived in Indonesia, with a further 400 scheduled for delivery imminently, and a target of 1,000 units by the end of the month.

The Indonesian Chamber of Commerce and Industry (Kadin) has been a vocal opponent of the import plan, directly appealing to President Prabowo Subianto to cancel the order. Saleh Husin, Deputy Chairman for Industry at Kadin, argued that importing fully assembled vehicles (CBU) would weaken the domestic automotive sector, offer limited economic benefit, and contradict the government’s stated industrialization goals. Kadin contends that Indonesian automotive companies are capable of meeting the vehicle needs of the Kopdes Merah Putih program.

“After receiving views from the automotive industry and associations, we appeal to the President to cancel the plan to import 105,000 units of commercial vehicles,” Husin said in a statement on February 22, 2026. He emphasized the importance of strengthening the domestic automotive component industry – encompassing engines, bodies, chassis, tires, batteries, and electronics – to boost local content (TKDN), create jobs, and generate broader economic benefits.

The concerns extend beyond simply replacing potential imports with domestic production. Agrinas’ CEO, Joao Mota, highlighted the long-term nature of vehicle ownership and the importance of consistent after-sales support. He stated that the vehicles are expected to remain in service for 20-30 years, potentially even 50, and that the Indian manufacturers had provided assurances regarding ongoing maintenance and parts supply within the contract.

The Kopdes Merah Putih program aims to establish 80,000 village and neighborhood cooperatives across Indonesia. Agrinas, as the designated implementing agency, is responsible for building the necessary infrastructure, including retail outlets and warehousing facilities. The pickup trucks are intended to facilitate the logistical operations of these cooperatives, supporting the distribution of goods and services in rural areas.

The debate over the import plan underscores a broader tension between the desire to rapidly implement ambitious government programs and the need to protect and nurture domestic industries. While the Kopdes Merah Putih initiative is seen as crucial for economic development in rural communities, the reliance on imported vehicles raises questions about the long-term sustainability of the Indonesian automotive sector and its supply chain. The government now faces a decision that will likely have significant implications for both the program’s success and the future of the country’s automotive manufacturing base.

The potential delay also raises questions about the initial rationale for sourcing vehicles from India. While no specific reasons were cited in available materials, the scale of the order and the relatively short timeframe for implementation suggest a need for rapid procurement. However, the backlash from domestic industry groups and lawmakers indicates that the government may have underestimated the sensitivity surrounding the import of such a large volume of finished vehicles.

The Indonesian automotive industry has been a key driver of economic growth in recent years, and the government has repeatedly emphasized the importance of industrialization and downstreaming to increase value-added production and exports. Cancelling the import plan would align with these stated policy objectives, but it could also create challenges for Agrinas in meeting the logistical demands of the Kopdes Merah Putih program. The coming days will be critical as the government weighs these competing considerations and determines the future of the controversial vehicle import deal.