JAKARTA | A government plan to import 105,000 commercial pickup vehicles has ignited debate over Indonesia’s economic direction, with the Indonesian Chamber of Commerce and Industry (Kadin) urging policymakers to reconsider the move in favor of strengthening domestic manufacturing.
The vehicles are slated to support the nationwide “Koperasi Desa Merah Putih” program, designed to boost rural economic activity. Yet business leaders fear that relying on imported units could sideline local automakers that already possess the capacity and readiness to supply the demand.
Kadin Deputy Chairman for Industry Saleh Husin cautioned that bringing in completely built-up (CBU) vehicles risks dampening the growth of Indonesia’s automotive sector at a time when it is striving to expand production and absorb more workers.
“Local manufacturers can meet this need with products that already exceed 40 percent domestic content,” he said, emphasizing that national industry should be positioned as the main driver of government procurement.
The import proposal reportedly involves Indian manufacturers Mahindra & Mahindra and Tata Motors, covering 70,000 four-wheel-drive pickups and 35,000 six-wheeled trucks scheduled for delivery throughout 2026.
Minister of Industry Agus Gumiwang Kartasasmita echoed similar concerns, noting that sourcing the vehicles domestically could unlock an estimated Rp27 trillion in economic ripple effects from supply chains and parts manufacturing to job creation across related industries.
For Kadin, the issue is more than a procurement decision; it is a test of policy consistency. The organization stressed that national strategies should align with President Prabowo Subianto’s downstreaming vision, which prioritizes value-added production, industrial resilience, and employment growth.
As discussions continue, industry players say the choice ahead is clear: whether Indonesia will rely on imports for speed, or invest in its own factories to build long-term economic strength. (*bh)
