RI Wants to Import 105,000 Pickup Cars, This Component Industry Reveals Disappointment

JAKARTA - Entrepreneurs who are members of the Association of Small and Medium-Sized Industries of Automotive Components (PIKKO) expressed their disappointment regarding the plan to import 105,000 pickup trucks carried out by PT Agrinas Pangan Nusantara. The plan is to import the vehicles from India for the operations of the Red and White Village/Neighborhood Cooperative.

The small automotive entrepreneur assessed that the import of complete vehicles that wanted to be carried out could eliminate business opportunities for small and medium automotive industries.

The Chairman of PIKKO Rosalina Faried in his official letter to the Ministry of Industry (Kemenperin) conveyed that his party asked that the procurement of pickups for village cooperatives should continue to prioritize the use of domestic production.

Considering that the ability of the domestic automotive and automotive components industries is already very capable of meeting these needs.

His party assessed that the plan to import operational vehicles should be a niche business that can be taken by the local automotive components industry. With good synergy, its members are also able to participate in making the operational vehicles.

"The plan to import vehicles can have a negative economic impact on the sustainability of the automotive industry ecosystem," said Rosalina, quoted from a written statement, Monday, February 23.

Rosalina said that PIKKO itself has a total of 110 members producing automotive components made from metal, plastic rubber and nonwoven insulation, carpets, as well as molds and dies which are tier 2 and 3 of the national automotive industry.

PIKKO has also been part of the ecosystem of OEMs and tier 1 for two-wheel and four-wheel or more vehicles.

With the current production utilization still at 60-70 percent, of course, the impact of imported complete vehicles is not only felt by manufacturers, but also by around 6,000 workers along the supply chain of the automotive components industry.

This step will disrupt the sustainability of the national automotive industry ecosystem.

According to Rosalina, in the midst of the sluggish national automotive industry, his party asked for the government's attention to limit the number of vehicles imported from India.

"And provide an opportunity for local manufacturers of motor vehicles to become suppliers of operational vehicle needs of the Red and White Village/Village Cooperative," he added.