Apindo Joins Call to Review Rp 24 Trillion Indian Pick-Up Import Plan

JAKARTA, Investortrust.id — The Indonesian Employers Association urges the government on Sunday, Feb 22, 2026 in Jakarta to reassess a plan by PT Agrinas Pangan Nusantara to import 105,000 vehicles worth around Rp 24 trillion, equal to $1.51 billion, for the Merah Putih Village Cooperative program, saying the policy risks weakening domestic automotive capacity at a time of soft demand. The group calls for a comprehensive review to ensure procurement reflects real operational needs in rural areas and aligns with national industrial priorities.

The association, known as Apindo, said the scale of the planned imports warranted deeper scrutiny before implementation.

“Given the very large scale of the planned procurement of operational vehicles, reaching 105,000 units with a value of around Rp 24 trillion, Apindo believes the import policy plan should be thoroughly evaluated before being implemented,” Chairwoman Shinta Kamdani said on Sunday, Feb 22, 2026.

She said domestic pickup production capacity ranged between 400,000 and 1,000,000 units per year, with most models carrying local content above 40 percent. In recent years, that capacity had not been fully utilized as domestic demand weakened.

Apindo said it supported the government’s effort to strengthen the Merah Putih Village Cooperative program as a tool for economic equalization and rural distribution.

“We see that strengthening village logistics is indeed needed to smooth the distribution of agricultural products and strategic commodities, while expanding market access for regional businesses,” Shinta said.

She noted that the national automotive industry supported an ecosystem employing around 1.5 million workers across its supply chain. In a sluggish domestic market, large-scale government procurement could serve as a crucial lever to maintain factory utilization and labor stability.

Apindo acknowledged that specific technical requirements, including four-wheel-drive vehicles for certain terrains, might justify tailored specifications.

“However, as long as production capacity and capability are available domestically, the procurement scheme should prioritize optimizing national industry and provide adequate time for domestic producers to meet the required volume, specifications, and criteria,” Shinta said.

She added that such an approach would amplify multiplier effects through higher capacity utilization, stronger component industries, and more stable employment across the supply chain. Public spending on this scale, she argued, should not only meet short-term logistical needs but also reinforce the long-term structure of national industry.

Under Presidential Instruction No. 17 of 2025, the government appointed PT Agrinas Pangan Nusantara to oversee the physical development of the cooperative program. The company has begun importing 35,000 four-wheel-drive pickups from Mahindra & Mahindra Ltd, 35,000 similar units from Tata Motors, and 35,000 six-wheel trucks from the same manufacturer, with 200 Mahindra units already delivered.

Industry data from the Indonesian Automotive Manufacturers Association showed that brands such as Suzuki, Isuzu, Mitsubishi, Wuling, DFSK, Toyota, and Daihatsu produced light commercial vehicles locally, with national pickup capacity exceeding 400,000 units per year. Most domestically produced models were four-by-two variants with more than 40 percent local content and supported by extensive after-sales networks, while four-by-four production required preparation time.

Apindo called for closer coordination between the Trade Ministry and the Industry Ministry to ensure import policy aligned with the administration’s broader industrialization agenda.

“In the spirit of Indonesia Incorporated, Apindo will consistently support strategic government programs by providing input and field data, so that every policy taken is not only effective in implementation but also delivers optimal impact on strengthening national industry and sustaining domestic employment,” Shinta said.