Why the Import of 105,000 Pick-up Trucks from India is Considered Irrational

Economics lecturer at Muhammadiyah University of Yogyakarta (UMY), Ahmad Ma’ruf, has criticised the government’s plan to import 105,000 pick-up trucks from India to support the operations of the Red and White Village Cooperatives (KDMP). The government claims that this large-scale import is part of efforts to accelerate the strengthening of village cooperatives.

“This policy needs to be reassessed in terms of economic rationality, its impact on the trade balance, and its support for the domestic industry,” said Ma’ruf on Wednesday, February 25, 2026.

According to him, this import policy is irrational from an economic perspective when linked to the KDMP. “The KDMP is a strategic program that does not have to be implemented blindly; it must still be carried out with economic rationality. Not all KDMPs require vehicles with such specifications.”

In addition, Ma’ruf said that the need for procurement in large quantities should instead be a momentum for the government to strengthen the national automotive industry. If the orders were diverted to domestic manufacturers, the impact would be much greater for the national economy. “If similar products were ordered from domestic industries, it would provide much more added value,” he said.

Several of these added values can be seen in production activities, job creation, and the strengthening of domestic raw material supply chains. “In fact, this policy could stimulate the growth of new industries,” said Ma’ruf.

He added that the procurement mechanism can still be carried out openly through a tender or bidding system, while still prioritising support for domestic products. A rational policy does not mean closing off competition, but rather ensuring that public funds have the optimal impact on the national economy.

Moreover, according to Ma’ruf, efforts must continue to ensure that the trade balance remains in surplus. “It’s not a false surplus due to exports of raw commodities, but a healthy surplus. How many trillions of rupiah will flow out of the country if this import is carried out? That will erode our foreign exchange reserves,” he said.

If this plan is realised, the national automotive industry could potentially lose a major opportunity stemming from public spending. In the long term, this is considered to be contrary to the spirit of economic independence that the government has been promoting.

Furthermore, Ma’ruf also reminded of the potential pressure on the rupiah’s exchange rate if this large-scale import is realised. According to him, a significant increase in imports will affect the balance of payments and the stability of foreign exchange reserves.

For this reason, he suggested that the government review the import plan and immediately engage in dialogue with national automotive industry players to find a more rational and strategic solution.

The most economically rational step, according to him, is to cancel the import plan and then work with the domestic automotive industry. “What can be done quickly and strategically can be discussed together. Business is still business, but it must have ideology and idealism,” he said.

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