Jakarta. The massive influx of trucks from China into the Indonesian market has triggered unhealthy competition in the commercial vehicle sector, particularly for mining operations. In addition to putting pressure on local industries, the presence of trucks from China also poses a potential threat to Indonesia's net-zero emission (NZE) target for 2026.

Deputy Secretary General of the Central Executive Board of the Indonesian Trucking Association (Aptrindo), Agus Pratiknyo, said Chinese trucks are currently flooding the domestic commercial vehicle market. In addition to offering lower prices, these trucks also maintain competitive quality, attracting many business players.

"China is able to sell trucks at lower prices because its distribution is already very extensive in Indonesia. Not just brands like FAW and Dongfeng -- various Chinese truck brands are already abundant here," he said on Wednesday.

According to Agus, most Chinese trucks enter as completely built-up (CBU) units, meaning they are imported fully assembled from the country of origin without complying with the local content requirement. This causes the selling price of Chinese trucks to be much lower compared to other brands that must meet local content regulations.

"Hino and Isuzu are forced to swallow the bitter pill because they support the implementation of local content regulations. They have to use domestic components, but that also means dealing with bureaucratic processes, which all incur costs," Agus added.

He explained that the Chinese trucks entering Indonesia are mostly dump trucks intended for the mining sector. Meanwhile, brands such as Hino and Isuzu ship trucks in completely knocked-down (CKD) form to Indonesia, assemble them domestically, and use local components.

This situation is prompting domestic trucking businesses to switch to Chinese trucks due to their more affordable prices and perceived adequate quality. However, Agus believes the government needs to establish fair regulations for all industry players.

"Now it’s up to the government to regulate the presence of Chinese trucks, but without killing off their businesses. Brands like Isuzu and Hino should also be given attention because they have already made investments in Indonesia," he said.

Furthermore, Agus warned that the widespread use of Chinese trucks could hinder Indonesia’s commitment to achieving net zero emissions. This is because most Chinese trucks still use Euro 2 emission standards, while Indonesia has required Euro 4 standards since April 12, 2022, under the 2017 Environment Ministry Regulation.

Aptrindo, said Agus, fully supports the government’s efforts to ensure that vehicles on the road meet at least Euro 4 emission specifications to help reduce air pollution.

He also noted that the lower prices of Chinese trucks are likely due to their simpler technology. In contrast, vehicles with Euro 4 or higher standards incur higher maintenance costs, require special spare parts, and demand more advanced mechanical training.

"Trucks with Euro 4 or above usually already use an electronic control unit (ECU). So as the technology becomes more sophisticated, the spare parts are also different, resulting in much higher costs compared to vehicles below Euro 4 standards," Agus concluded.