Indian Pickup Truck Imports Threaten Indonesia's Domestic Automotive Industry

Jakarta (ANTARA) - Automotive expert from the Bandung Institute of Technology (ITB), Yannes Martinus Pasaribu, stated that the order of 105,000 pickup truck units from India has the potential to diminish the role of the domestic manufacturing industry. “Agrinas’ procurement of 105,000 commercial vehicles from India is a controversial step in accelerating food logistics. On a macro scale, this process of cannibalising the domestic industry triggers early deindustrialisation because the volume is almost equivalent to 100 per cent of the national pickup truck market, which risks weakening the automotive industry in the local market,” said Yannes Martinus Pasaribu on Tuesday. Consequently, their opportunity to develop with these vehicle orders is hindered. Not only does it hinder the opportunity for domestic component suppliers to develop, but the procurement of vehicles from outside Indonesia is also feared to have an impact on job losses in the manufacturing sector. “Socially, this potentially threatens the sustainability of 6,000 workers who are at risk of being laid off as a logical consequence of the decline in mass production volume at assembly plants and tier two or three vendors,” he said. Chairman of Gaikindo, Putu Juli Ardika, said that if the government utilises vehicles produced domestically, it has the potential to have a significant impact on the advancement of the industry amidst the increasingly challenging pressures year after year. “At the very least, we all hope to advance this automotive industry together. Because the impact is far-reaching,” said Putu Juli Ardika in Jakarta on Monday (23 February). According to him, the automotive industry’s ability to accommodate the government’s desire to provide commercial vehicles can still be managed because the capacity is not fully utilised. “And we have capacity that can still be used. Our capacity is 2.59 million and our production is only 1.3 million. And if this is encouraged, it will definitely have a very significant impact on our industry. Because if this industry develops, we can maintain jobs,” he said. The government’s confidence in providing domestic commercial vehicles is considered to provide an opportunity for the automotive industry in the commercial sector to develop much better. Not only will this create more job opportunities, but investment in the automotive sector, especially in the commercial industry, will also continue to grow. Copyright © ANTARA 2026