Palace Reviews Plan to Import 105,000 Pickups as Industry Pushes Back

JAKARTA, Investortrust.id — Indonesia’s presidential palace said on Monday, Feb 23, 2026 in Jakarta it would review data behind a plan by state-owned PT Agrinas Pangan Nusantara to import 105,000 pickup trucks from India for the Koperasi Merah Putih village program, as business groups and lawmakers warned the move could undermine domestic industry.

“We will check the numbers first,” State Secretary Prasetyo Hadi told reporters after a coordination meeting, declining to comment further on the Rp 24.66 trillion, equal to about $1.5 billion, procurement plan.

A Massive Procurement Plan

PT Agrinas Pangan Nusantara has been tasked under a presidential instruction to support the rollout of Koperasi Merah Putih, a flagship initiative aimed at strengthening village-based cooperatives and rural logistics.

Out of a total requirement of 160,000 vehicles in 2026, the company said 55,000 units would be sourced from domestic brand holders such as Isuzu, Hino, Mitsubishi Motors and Toyota, while 105,000 units would be imported from India.

The imported vehicles consist of 35,000 four-wheel-drive pickups from Mahindra & Mahindra Ltd., 35,000 similar units from Tata Motors, and 35,000 six-wheel trucks, with deliveries scheduled throughout 2026.

Agrinas Chief Executive Joao Angelo De Sousa Mota said the procurement followed market exploration and prequalification, with selection based on price, production capacity and technical specifications, particularly four-wheel-drive capability for challenging terrain.

The company argued domestic pickup production capacity currently stands at around 70,000 units per year, and absorbing the full requirement locally could disrupt other logistics sectors.

Industry Pushback Intensifies

Business groups see the matter differently. Indonesia Chamber of Commerce and Industry (Kadin Indonesia), the country’s largest business lobby, urged President Prabowo Subianto to cancel the import plan, warning that completely built-up vehicle imports risk weakening a national automotive sector that supports a broad supply chain.

“Importing CBU vehicles is the same as killing a growing domestic automotive industry,” said Saleh Husin, deputy chairman for industry at Kadin, arguing that local manufacturers are capable of supplying the required pickups.

The Indonesia Employers Association (Apindo), also called for a comprehensive review.

Apindo Chairwoman Shinta Kamdani said domestic car production capacity ranges between 400,000 and 1 million units annually, with local content levels exceeding 40%, but utilization has weakened due to softer domestic demand.

Large-scale public procurement, she argued, should serve as a lever to boost factory utilization and protect roughly 1.5 million jobs across the automotive value chain.

.

Lawmakers Demand Transparency

Members of Parliament’s Commission VI, which oversees trade and industry, urged the government to reassess the plan and ensure compliance with industrial and import regulations.

Legislator Nevi Zuairina said operational vehicle imports should be a last resort and must align with national industry protection principles under existing laws.

She called for an objective and transparent audit of actual needs before any import decision is finalized, warning that policies favoring cooperatives should not contradict broader industrialization goals.

Industry Minister Agus Gumiwang Kartasasmita has also stressed that domestic manufacturers possess significant capacity to produce light commercial vehicles, and that prioritizing local production would generate multiplier effects across tire, glass, battery, metal, plastic and electronics industries.

Balancing Rural Ambitions and Industrial Policy

The dispute highlights a broader tension in Indonesia’s economic strategy under President Prabowo, who has championed both rural empowerment through cooperatives and a push for downstream industrialization and job creation.

Supporters of the import plan argue that timely deployment of vehicles is critical to improving rural logistics, agricultural distribution and market access in remote areas, especially where four-wheel-drive capability is required.

Critics counter that even if certain specifications are needed, procurement schemes should allow domestic producers time and volume certainty to meet demand, ensuring that public spending strengthens national industry rather than external suppliers.

For now, the palace has signaled caution rather than endorsement. By pledging to examine the figures first, the government appears to be weighing how to reconcile an ambitious village program with the political and economic costs of sidelining a strategically important industry.