Kadin Indonesia Urges Prabowo to Scrap $1.6 Billion Indian Pick-Up Import Plan

JAKARTA, Investortrust.id — The Indonesian Chamber of Commerce and Industry, the country largest business lobby, urges President Prabowo Subianto on Sunday, Feb 22, 2026 in Jakarta to cancel a plan to import 105,000 commercial vehicles worth Rp 24.66 trillion, equal to $1.55 billion, from India for the Merah Putih Village Cooperative program, warning the move could undermine domestic industry and jobs.

The appeal comes as the government pushes ahead with the procurement to support nationwide cooperative operations.

Kadin Indonesia viewed the plan contradicted the administration’s industrialization drive and risked weakening local automotive manufacturers. Saleh Husin, deputy chair for industry at Kadin Indonesia and a former industry minister, said importing completely built-up vehicles would fail to generate domestic value added.

“After receiving views from automotive industry players and associations, we urge the President to cancel the plan to import 105,000 commercial vehicles,” Saleh said in a written statement on Sunday, Feb 22, 2026.

He added that local manufacturers were ready to supply the pickup trucks required for the Merah Putih Village and Urban Cooperative program, a national initiative designed to strengthen village-based economic activity through cooperatives.

According to Saleh, Prabowo’s priority agenda emphasized downstream processing and industrialization to expand employment and promote economic equity. He said large-scale vehicle imports would contradict efforts to build domestic manufacturing capacity.

“Importing CBU vehicles is the same as killing a growing automotive industry,” he said.

The government previously appointed PT Agrinas Pangan Nusantara to execute the physical development of the cooperative program under Presidential Instruction No. 17 of 2025. The regulation aimed to accelerate the establishment and development of the Merah Putih cooperatives across the country.

Agrinas proceeded with plans to import 105,000 units from India, comprising 35,000 four-wheel-drive pickup trucks from Mahindra & Mahindra Ltd, 35,000 similar units from Tata Motors, and 35,000 six-wheel trucks from the same manufacturer. Shipments were scheduled to be delivered in stages throughout 2026, with 200 Mahindra pickups having arrived so far.

Agrinas officials cited domestic production constraints as one of the main considerations. Annual pickup output in Indonesia stood at around 70,000 units, and diverting supply to the cooperative program could disrupt other logistics and commercial sectors.

They also argued that imported models offered competitive specifications at more affordable prices, while limited brand options in certain segments had kept local vehicle prices relatively high.

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