KSPI: Domestic Pickup Production Could Absorb 10,000 Workers

Jakarta (ANTARA) - The Confederation of Indonesian Trade Unions (KSPI) estimates that if the production of 105,000 open-bed pickup vehicles were carried out domestically, it could help absorb at least 10,000 new workers within a period of six months to one year of production.

“If produced in Indonesia, it could absorb more than 10,000 workers. Not to mention the spare parts and maintenance industries that would also be stimulated. The employment absorption would be long-lasting,” said KSPI President Said Iqbal in a statement in Jakarta on Tuesday.

Previously, PT Agrinas Pangan Nusantara had announced plans to import 105,000 pickup vehicles from India to support the operations of Merah Putih village cooperatives (kopdes).

The imports would comprise 35,000 units of 4x4 pickups manufactured by Mahindra & Mahindra Ltd (M&M), 35,000 units of 4x4 pickups from Tata Motors, and 35,000 six-wheeled trucks from the same producers. Vehicle deliveries would be carried out in stages throughout 2026.

Said stated that the import plan potentially threatens the job security of tens of thousands of workers in the national automotive industry.

According to him, the entry of 105,000 imported pickup units would cause domestic automotive factory output to decline, which could ultimately trigger reductions in employment contracts and redundancies.

“Our members at automobile manufacturers have come forward and spoken directly. There is potential for redundancies because production output could fall as a result of importing 105,000 pickups from India,” Said explained.

He conveyed that KSPI and the Labour Party are requesting the government to cancel the import plan and instead assign the order to automotive manufacturers that have factories or production facilities within the country.

He noted that a number of automotive manufacturers such as Hino, Isuzu, Suzuki, Toyota, and Mitsubishi possess adequate technological and production capacity to meet the requirement.

According to him, if pricing is a concern, the government could negotiate on specifications.

“If the price is considered expensive, the specifications can be adjusted. Automatic features can be made manual, digital dashboards can be simplified. It is simply a matter of negotiation. Do not resort to imports,” he said.