JAKARTA - The Indonesian Chamber of Commerce and Industry (Kadin) has asked President Prabowo Subianto to cancel the plan to import 105,000 units of commercial vehicles from India worth Rp24.66 trillion to support the operations of the Red and White Village/Neighborhood Cooperative (KDKMP).
Deputy Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for Industry Saleh Husin assessed that the import of vehicles in the form of a whole (completely built up/CBU) has the potential to weaken the national automotive industry, does not have a significant impact on the domestic economy, and is contrary to the industrialization agenda that is being encouraged by the government.
He showed that domestic automotive industry players were also ready to meet the needs of pickup vehicles for KDKMP.
"After receiving views from the automotive industry and associations, we appeal to the President to cancel the plan to import 105,000 units of commercial vehicles," he said in a statement, Sunday, February 22.
According to him, the need for pickup trucks for KDKMP should be a momentum to strengthen and develop the domestic automotive industry, not open up space for CBU imports which can suppress the sustainability of the assembly and component industries.
He emphasized that national automotive companies have the capacity to meet the demand for operational vehicles needed for the program.
Saleh explained that the automotive components industry ranging from engines, bodies, chassis, tires, batteries, seats to electronic devices are an important part of the backward linkage of the motor vehicle industry.
"The stronger the production of local automotive components, the higher the TKDN, employment absorption, and multiplier effect on the economy. Conversely, if the market is dominated by imported vehicles in their entirety, then the national component industry will be depressed and the agenda for downstream and industrialization can be weakened," he explained.
In various priority agendas, President Prabowo emphasized the importance of downstream processing and industrialization to create jobs, increase added value, and encourage technology transfer and human resource development. Therefore, industries that have been built in the country are considered to need to be protected through coordinated policies.
"Importing CBU cars is the same as killing the growing automotive industry," explained Saleh.
As reported, the government through Presidential Instruction (Inpres) Number 17 of 2025 appointed PT Agrinas Pangan Nusantara as the executor of the physical development of the Red and White Village/Neighborhood Cooperative program (Kopdes Merah Putih).
The company is currently realizing the import of 105,000 vehicles from India consisting of 35,000 units of 4x4 pickup trucks produced by Mahindra & Mahindra, 35,000 units of 4x4 pickups from Tata Motors, and 35,000 units of six-wheeled trucks from the same manufacturer, and the delivery is carried out gradually throughout 2026 and some units have arrived in Indonesia.
On the other hand, a number of manufacturers such as Suzuki, Isuzu, Mitsubishi Motors, Wuling Motors, DFSK, Toyota, and Daihatsu have produced light commercial vehicles in the country with a capacity of more than 400,000 units per year, although they have not been optimally utilized.
The majority of vehicles produced have 4x2 drive with TKDN above 40 percent, as well as supported by an extensive after-sales service network. For the 4x4 type, the national industry is considered capable of producing with a certain preparation time
Saleh emphasized that the policy on the import of vehicles under the authority of the Ministry of Trade needed to be coordinated with the mandate of strengthening the industry carried out by the Ministry of Industry.
He added that the synchronization of these policies is important so that the big agenda of industrialization is not eroded by overly loose trade policies.
In terms of regulations, motor vehicles are not included in prohibited and restricted goods, so they do not require special import approval.
However, the government still has room to design policies that are more in favor of the domestic industry, for example by prioritizing vehicles with high TKDN, domestic assembly schemes (CKD/IKD), or local manufacturing partnerships.
According to him, village development and strengthening of cooperatives should be a driver for the national industry.
He added that integrated policies would ensure that the downstream agenda and economic independence would go hand in hand with the vision of development towards Indonesia Emas 2045.
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