Procurement of Cooperative Vehicles Could Absorb 10,000 Workers
The Indonesian Labour Confederation (KSPI) has stated that if the production of 105,000 pickup trucks is carried out domestically, it could help absorb labour. At least 10,000 new workers could be employed within a period of 6 months to 1 year of pickup truck production.
“Not to mention the component and maintenance industries that will also be affected. The absorption of labour will be significant,” said KSPI President Said Iqbal, as quoted by Antara, Tuesday, February 24, 2026.
Previously, PT Agrinas Pangan Nusantara planned to import 105,000 pickup trucks from India to support the operations of the Merah Putih Cooperative. The import consists of 35,000 units of 4x4 pickup trucks produced by Mahindra & Mahindra Ltd (M&M), 35,000 units of 4x4 pickups from Tata Motors, and 35,000 units of six-wheeled trucks from the same manufacturer. The vehicles will be delivered in stages throughout 2026.
Furthermore, Said said that the plan to import vehicles has the potential to threaten the livelihoods of tens of thousands of workers in the national automotive industry. According to him, the entry of 105,000 imported vehicles will reduce the output of domestic automotive factories. Ultimately, he said, this could lead to reduced contracts and layoffs.
“Our members at car manufacturers have come and conveyed this directly. There is a potential for layoffs because production output could decrease due to the import of 105,000 pickups from India,” said Said.
He said that KSPI and the Labour Party are asking the government to cancel the plan to import vehicles and instead entrust it to automotive manufacturers that have factories or production facilities in the country. Said stated that several automotive manufacturers such as Hino, Isuzu, Suzuki, Toyota, and Mitsubishi have adequate technology and production capacity to meet the needs.
Said believes that if the price is a consideration, the government can negotiate specifications. “If the price is considered expensive, the specifications can be adjusted. Automatic features can be made manual, and digital dashboards can be simplified. It’s just a matter of negotiation. Don’t import instead,” he said.
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