Indonesia Appoints Pindad to Lead New National Car Project
Jakarta. The Indonesian government has appointed state-owned defense manufacturer Pindad to lead the country’s long-sought National Car Project, Industry Minister Agus Gumiwang Kartasasmita said on Wednesday, describing the initiative as a Strategic National Project under President Prabowo Subianto’s direction.
Based in Bandung, West Java, Pindad is known for producing assault rifles, armored personnel carriers (APCs), and tactical military vehicles. The move marks the company’s first major step into the civilian automotive industry.
“I have received instructions from the President, who decided that the development of the national car will be carried out by PT Pindad,” Agus told reporters after a coordination meeting in Jakarta.
He said the first meeting between the Industry Ministry and Pindad had been held to align understanding and set the foundation for the project.
“In our initial discussions, we presented Indonesia’s aspiration to have a national car. Both the ministry and Pindad now share the same vision on how to achieve this directive,” Agus said.
While details such as production location, capacity, and timeline have yet to be finalized, the minister said the project will aim to enhance domestic manufacturing capabilities and reduce reliance on imported technologies.
President Prabowo, who took office in October 2024, has repeatedly showcased Pindad-made vehicles at public events and encouraged ministers to use locally built official cars, signaling his broader agenda for industrial self-reliance.
The new initiative revives a long-standing ambition to create a truly homegrown Indonesian car, a goal that has faced repeated setbacks over the past three decades.
The first major attempt came in 1996 under President Soeharto, when the government backed Timor Putra Nasional, owned by his son Tommy Soeharto. The “Timor” car was marketed as Indonesia’s national vehicle but relied heavily on imported Kia components from South Korea. The project collapsed during the 1997–1998 Asian Financial Crisis amid allegations of cronyism and trade violations.
The dream resurfaced in the 2010s when the Esemka brand, supported by then–Solo mayor Joko Widodo, was promoted as a grassroots national car project. Despite strong public enthusiasm, production never reached mass scale due to limited local component manufacturing and regulatory hurdles, and the brand now operates on a small commercial scale.
Pindad’s appointment signals a shift toward state-led industrial development using an established manufacturer with proven engineering capacity and government backing -- things that were absent in previous ventures.
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