Indonesia is at the center of a fiery debate over a government-linked plan to import 105000 pickup trucks from India, a move that has sparked criticism from industry leaders, lawmakers, and economic experts. Critics argue that the large-scale import could harm the country’s domestic automotive industry, weaken local supply chains, and undermine national economic goals, even as the government aims to support a rural cooperative program with the vehicles. The issue has quickly grown beyond a technical procurement plan into a broader debate about industrial policy and national economic strategy.
The Controversial Import Proposal and Its Scale
The Indonesian state-owned company PT Agrinas Pangan Nusantara announced plans to import 105000 units of commercial pickup trucks and light trucks from India, a procurement valued at around Rp 24.66 trillion (about 1.5 billion US dollars). According to the plan, the vehicles are intended to support the operational needs of the Koperasi Desa/Kelurahan Merah Putih program, a government initiative aimed at strengthening village and subdistrict cooperative activity throughout the archipelago.
Under the proposal, imports include three main categories:
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35000 four wheel drive pickups from Mahindra & Mahindra Ltd.
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35000 four wheel drive pickups from Tata Motors.
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35000 six wheel trucks from Tata Motors.
Deliveries are scheduled to occur in phases throughout 2026. So far, early batches of imported pickups have already arrived in Indonesia.
Government officials have described the import plan as a way to ensure that cooperatives across remote and rural regions can quickly access reliable commercial vehicles. Supporters say that buying trucks in bulk from India allows rapid deployment and cost savings for the program. Yet critics say the move could have serious unintended consequences.
Industry Leaders Warn of Harm to Domestic Production
The Indonesian Chamber of Commerce and Industry, known as Kadin, has taken a firm public stance urging President Prabowo Subianto to cancel the import plan, warning that it threatens the sustainability of the domestic automotive sector. Kadin’s Deputy Chairman for Industry, Saleh Husin, has argued that importing completely built-up vehicles (CBU) would weaken Indonesian auto manufacturing capacity and fail to generate meaningful economic benefit at home.
Kadin and industry bodies have highlighted several key concerns:
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The domestic automotive sector, including companies such as Suzuki, Isuzu, Mitsubishi, Wuling, DFSK, Toyota, and Daihatsu, already has production capacity to meet pickup truck demand, totaling over 400000 units per year, far exceeding the proposed import number.
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The fully built-up import model risks sidelining local assembly and parts suppliers, potentially shrinking job opportunities in upstream industries.
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Importing vehicles reduces the backward linkage of the automotive value chain, including local production of components such as engines, tires, glass, batteries, and plastics.
Industry advocates stress that the domestic pickup truck segment has not been used to full capacity, and pulling in vehicles from abroad could undermine growing momentum in the local automotive ecosystem. The concern is that domestic plants could face reduced utilization and slower growth if a large portion of market demand shifts to imports.
Political Opposition and Economic Policy Questions
The import plan has drawn attention beyond the business community, catching the eye of lawmakers and government ministries.
Some legislators have criticised the proposal as contradictory to President Prabowo’s stated goals of strengthening national manufacturing independence and pride in locally made products. Opponents point out that the president has publicly championed the use of Indonesian produced vehicles by officials and government entities in recent years, signaling a commitment to reducing reliance on imports.
Industry Minister Agus Gumiwang Kartasasmita echoed economic concerns, noting that fully built-up imports risk directing economic value, including job creation and supply chain development, to foreign producers instead of stimulating growth at home. He estimated that producing 70000 pickup trucks domestically could generate around Rp 27 trillion in economic impact across related sectors, including parts, manufacturing, and services.
In contrast, the Ministry of Trade has stated that the planned import does not require special import permits or additional technical approval, suggesting the government sees no legal barriers to proceeding with the imports.
What Agrinas Says About the Import Strategy
PT Agrinas Pangan Nusantara has defended its decision to import the vehicles, offering practical reasons for moving ahead with the plan. The company’s leadership says that some domestic pickup stock has already been depleted, with waiting times for locally produced trucks reaching up to a year for certain models. Imports are seen by Agrinas as a way to ensure quick availability for cooperative distribution, particularly where local assembly lines cannot immediately meet the volume demanded.
The company also suggests that price competitiveness from Indian manufacturers allows it to offer vehicles at fair cost levels, which could benefit the rural cooperatives financially.
Broader Impact on the Automotive Supply Chain
Beyond major assembly plants, industry groups representing smaller suppliers have raised alarms about the impact of large-scale imports.
The Association of Automotive and Motorcycle Equipment Industries (GIAMM) has highlighted the potential harm to component manufacturers, noting that the volume of imports (105000 units) approaches nearly half of Indonesia’s entire annual commercial vehicle sales. This could displace the usual demand for locally produced parts and weaken smaller firms that rely on stable domestic orders.
Similarly, the flat and safety glass sector, an important link in the automotive supply chain, has called for careful evaluation of the import plan, arguing that maintaining local assembly helps sustain capacity and preserves jobs in related sectors.
Looking Ahead: Policy Choices and Economic Debate
As the political, economic, and industrial debate continues, Indonesia stands at a crossroads between short-term operational efficiency and long-term industrial goals.
Proponents of maintaining the import plan argue that the vehicles will help rural development programs move quickly and fill urgent logistical needs. Opponents emphasize that protecting and energizing domestic manufacturing brings broader economic benefits and aligns with national industrialization strategies.
With public pressure building from industry associations, lawmakers, and trade officials, President Prabowo’s administration may face decisions about whether to adjust or cancel the import plan to reflect domestic manufacturing interests.
The outcome will have implications not just for the pickup truck segment but also for the future direction of Indonesia’s industrial policy and capacity building.
