Jakarta, Indonesia – A proposed plan by state-owned enterprise PT Agrinas Pangan Nusantara to import pickup trucks and trucks from India, valued at approximately (approximately ), is facing mounting opposition from Indonesian automakers and industry groups. The proposed import, intended to support the Koperasi Desa/Kelurahan Merah Putih (KDKMP) food distribution network, has ignited a debate over industrial policy and domestic manufacturing capacity.
The Indonesian Automotive Manufacturers Association (Gaikindo) has voiced strong concerns, arguing that the country’s existing production capabilities are more than sufficient to meet the needs of the KDKMP program. According to Gaikindo Chairman Putu Juli Ardika, Indonesian manufacturers – including Suzuki, Isuzu, Mitsubishi, Wuling, DFSK, Toyota, and Daihatsu – collectively possess an annual pickup truck production capacity exceeding units. “Our members, along with the broader automotive component industry, have the capability to fulfill this demand,” Ardika stated in a recent press statement. “What’s needed is adequate time to ramp up production to meet the required volume and specifications.”
The import plan specifically involves Scorpio pickups from Mahindra & Mahindra Ltd. And units from Tata Motors India, split between Yodha Pick-Up and Ultra T trucks. This scale of import has prompted criticism that it could stifle domestic production and negatively impact employment within the Indonesian automotive sector.
The Indonesian Chamber of Commerce and Industry (Kadin) has also weighed in, urging President Prabowo Subianto to reconsider the import plan. Saleh Husin, Wakil Ketua Umum (Deputy Chairman) of Kadin’s Industry division, stated on , that the import of completely built-up (CBU) vehicles would hinder the development of the domestic automotive industry, fail to stimulate the national economy, and contradict the government’s industrialization agenda. Husin, a former Minister of Industry, emphasized that domestic automotive companies have expressed their readiness to supply the vehicles required by the KDKMP.
The controversy comes at a time when the Indonesian government is aiming for economic growth. Critics argue that prioritizing imports over domestic production undermines this goal and could create long-term structural imbalances within the Indonesian economy. The sheer size of the project – valued at – is seen as having strategic implications not only for food distribution but also for the broader direction of national industrial policy.
Gaikindo highlights that domestically produced vehicles typically feature 4×2 drivetrains and a high degree of local content, exceeding percent. The implications of importing vehicles with potentially different specifications and local content levels are also a concern for the industry. The debate underscores the tension between the need to efficiently support the KDKMP program and the desire to foster a robust and competitive domestic automotive industry.
The planned import has also drawn scrutiny from lawmakers. Evita Nursanty, Deputy Chairman of Commission VII of the Indonesian House of Representatives (DPR RI), highlighted the strategic impact of the project, noting its potential effects on both rural logistics and the national industrial structure.
The situation is further complicated by a recent trade agreement finalized between Indonesia and the United States on , which reduces U.S. Tariffs on Indonesian goods to percent from percent. While this agreement focuses on broader trade relations, it highlights Indonesia’s ongoing efforts to diversify its trade partnerships and strengthen its economic ties with key international markets. The contrast between this trade deal and the proposed Indian truck import underscores the complex considerations facing Indonesian policymakers as they navigate competing economic priorities.
The outcome of this debate will likely set a precedent for future government procurement decisions and signal the administration’s commitment to supporting domestic industries versus pursuing cost-effective imports. The automotive industry is closely watching the situation, anticipating a decision that could have significant ramifications for its long-term growth and competitiveness.
