Trade Union Urges Halt to Car Imports for Village Cooperatives
Trade unions believe that importing 105,000 vehicles from India will lead to job losses. Said Iqbal, President of the Labour Party and the Confederation of Indonesian Trade Unions (KSPI), stated that the imports would reduce production at domestic automotive factories and potentially trigger contract reductions and layoffs.
“We at KSPI and the Labour Party strongly urge the immediate halt and cancellation of the import of 105,000 vehicles from India,” he said during a virtual press conference on Tuesday, February 24, 2026.
Said Iqbal mentioned that foreign companies, such as those from Japan, including Isuzu and Daihatsu, have already invested in Indonesia and have been producing commercial vehicles and employing workers for years.
He questioned the government’s rationale for importing vehicles from India when Japanese companies possess superior technology. Iqbal also criticised the lack of coordination between ministries, which allowed the imports to proceed despite widespread opposition.
“Indonesian workers’ money, through taxes, is being given to Indian workers. How can they think like that?” Iqbal said.
Iqbal stated that factory workers are facing the threat of layoffs, as seen with approximately 400 outsourced employees of PT Karunia Alam Segar, which produces Mie Sedaap. Now, workers in the automotive industry are facing the same prospect.
If the vehicle procurement were shifted to domestic production, Iqbal said, it could create around 10,000 jobs to produce the same vehicles. “Let’s say the production would take six months to a year,” he said.
Previously, the import of completely built-up (CBU) vehicles was carried out by PT Agrinas Pangan Nusantara, which received the mandate to develop the Merah Putih Cooperative and its facilities. The state-owned enterprise ordered 35,000 units of the Mahindra Scorpio Pik Up and 70,000 units of the Tata Motors truck, with a total budget of IDR 24.66 trillion.
Minister of Cooperatives Ferry Juliantono said that the import of 105,000 vehicles from India is not within the authority of the Ministry of Cooperatives. However, he said that the procurement of vehicles for the Merah Putih Cooperative has been postponed.
“That is not within the authority of the Ministry of Cooperatives, so it has been decided to postpone it until President Prabowo arrives,” Ferry said when met at the Bank Mega Tower, Jakarta, on Tuesday, February 24, 2026.
The request to postpone the vehicle imports came from the DPR RI after the news spread. Director of PT Agrinas Pangan Nusantara, Joao Angelo De Sousa Mota, said that he would comply with the decisions of the DPR and the government. “We will always be obedient, loyal to the country and the people,” Joao said in Jakarta on Monday, February 23, 2026, as quoted by Antara.
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