Jakarta. Industry Minister Agus Gumiwang Kartasasmita has raised concerns over a proposal to import tens of thousands of pickup trucks from India for newly formed rural cooperatives, arguing that Indonesia’s domestic automotive industry has sufficient capacity to meet the demand.

“If all pickup vehicle needs are met through imports, the economic value added and job creation will be enjoyed by industries abroad,” Agus said in a statement.

He argued that sourcing the vehicles domestically would generate broader economic benefits, including employment and stronger supply chains for local component manufacturers.

As an illustration, Agus said that producing 70,000 pickup units locally could generate around Rp 27 trillion in economic impact. The benefits would extend beyond vehicle assembly to related sectors such as tire manufacturing, glass, batteries, metals, leather, plastics, cables, and electronics.

Agus added that locally produced 4x2 pickup trucks meet international standards and are capable of operating across Indonesia’s diverse and often challenging road conditions. However, he acknowledged that Indonesia does not yet manufacture specialized 4x4 pickup models designed for extreme terrain, particularly in mining and plantation areas.

“We continue to urge automotive industry players to maintain business continuity and preserve jobs, so that layoffs do not occur amid current industry challenges,” he said.

The proposed imports — valued at an estimated Rp 25 trillion ($1.5 billion) — were first disclosed by Joao Angle De Sousa Mota, president director of state-owned food company Agrinas Pangan Nusantara.

Agrinas is reportedly planning to import 35,000 four-wheel-drive pickups from Mahindra & Mahindra, another 35,000 4x4 pickups from Tata Motors, as well as 35,000 six-wheel trucks from the same manufacturers, with deliveries scheduled in phases throughout 2026.

The fleet is intended to support tens of thousands of “Merah Putih” Rural Cooperatives established by the government to strengthen local economic activity.

Previously, the Indonesian Automotive Industries Association (Gaikindo), whose members are predominantly Japanese automakers, also signaled readiness to supply pickup fleets from brands already operating in Indonesia.

Collectively, Gaikindo members have an annual production capacity exceeding 400,000 pickup units, much of which remains underutilized. Most domestically produced pickups are 4x2 models with local content levels above 40% and are supported by extensive after-sales and service networks nationwide.

The debate highlights tensions between industrial policy, rural development programs, and efforts to protect domestic manufacturing capacity at a time when Indonesia is navigating broader trade and investment negotiations.