Import 105,000 Pickups from India, GAIKINDO: National Industry Capable of Meeting Needs

Daihatsu Grand Max.(Photo: Daihatsu)

JAKARTA - Indonesia will receive 105,000 units of pickup vehicles from India ordered by PT Agrinas Pangan Nusantara. The import plan triggered a response from the Indonesian Motor Vehicle Industry Association (GAIKINDO).

GAIKINDO said that currently it has 61 member companies with a total production capacity of four-wheeled vehicles reaching 2.5 million units per year.

For the medium-low commercial vehicle or pickup truck segment, production is carried out by a number of members, namely Suzuki Indomobil Motor, Isuzu Astra Motor Indonesia, Krama Yudha Tiga Berlian Motors, SGMW Motor Indonesia, Sokonindo Automobile, Toyota Motor Manufacturing Indonesia, and Astra Daihatsu Motor.

Overall, the national pickup truck production capacity is said to reach more than 400,000 units per year and until now has not been optimally utilized.

The majority of vehicles produced are 4x2 drives with a Domestic Component Level (TKDN) of over 40 percent.

According to GAIKINDO, commercial vehicles 4x2 have been able to meet the needs of the community to various regions, supported by an extensive after-sales service network. Meanwhile, for 4x4 driving vehicles, the domestic industry can also produce, although it takes time to prepare.

GAIKINDO Chairman Putu Juli Ardika stated that the national automotive industry has the ability to meet domestic needs.

"Actually, GAIKINDO members and also its supporting industries, including the automotive component industry which is included in GIAMM, have production capacity to meet these needs. However, it does take adequate time so that the number and criteria can be met," said Putu Juli in an official statement.

He added that if given the opportunity and enough time, GAIKINDO members together with the Automotive and Motorcycle Equipment Industry Association (GIAMM) as part of the national automotive industry ecosystem can participate in meeting the needs of these commercial vehicles.

This step is considered to be able to optimize domestic production capacity while preventing the potential for labor reduction in the automotive sector. Currently, the national automotive industry ecosystem is said to absorb around 1.5 million workers, while domestic market demand in recent years has declined.