The Indonesian Chamber of Commerce and Industry (Kadin) has voiced strong support for the swift action taken by Deputy Speaker of the House of Representatives, Sufmi Dasco Ahmad, in urging the government to postpone the planned import of pickup trucks from India by PT Agrinas Pangan Nusantara. Kadin Indonesia asserts that this decisive move is crucial for safeguarding the national automotive industry from potential collapse and preventing significant financial setbacks for the Kopdes Merah Putih (Red and White Village Cooperative).
Saleh Husin, Deputy Chairman of Kadin for Industry, commended Dasco’s responsiveness. “We at Kadin extend our highest appreciation to Mas Dasco, and salute his quick response. Imagine if 105,000 vehicles intended for Kopdes Merah Putih were imported products; what would be the fate of their after-sales service? Such a policy could render imported vehicles useless wrecks after just a few years due to intractable spare parts difficulties,” Saleh stated in an official release on Monday (February 23, 2026).
Earlier, Dasco had emphasized the necessity for a thorough and detailed discussion of the import proposal. He indicated that further insights would be sought upon President Prabowo’s return from an overseas visit, ensuring a comprehensive review process.
“We will meticulously discuss all the details concerning these imports. Naturally, the President will also solicit opinions and assess the readiness of domestic companies. Therefore, we have conveyed the message that these plans should be postponed for now,” Dasco affirmed. He further elaborated that President Prabowo intends to engage in detailed discussions with various stakeholders and evaluate the capabilities of Indonesian manufacturers before any final decision is made.
Saleh Husin also revealed the collective concern of the local industry. “We have coordinated with various players in the automotive industry, including component manufacturers. They have collectively pleaded with the President to halt the ongoing vehicle imports from India,” Saleh disclosed.
Indian Producers Urged to Invest in Factories in Indonesia
Dasco further asserted that if Indian producers are serious about participating in the Indonesian market, they should demonstrate their commitment by establishing manufacturing plants within the country. This approach aligns with the practices of established local producers of commercial vehicles like pickup trucks, including major brands such as Toyota, Suzuki, Honda, Daihatsu, Mitsubishi, Hino, Hyundai, DFSK, and even newer entrants like BYD and VinFast. The government is expected to ensure a level playing field for all business actors, fostering fair competition and encouraging local investment.
Saleh Husin underscored the critical issue: the import of completely built up (CBU) vehicles by PT Agrinas Pangan Nusantara could severely cripple the domestic automotive industry. He argued that such imports fail to stimulate the local economy and directly contradict the government’s robust industrialization program. This stance is particularly pertinent as President Prabowo aims for an 8% economic growth target, a goal that would be jeopardized if national industries are unable to expand. All policies, especially those involving state-owned enterprises, must strictly adhere to President Prabowo’s strategic vision.
He consistently emphasized the profound importance of downstream processing and industrialization for augmenting value creation, generating employment opportunities, and boosting exports. The automotive industry, with its extensive backward and forward linkages, is a cornerstone of this economic strategy. “We must support the President’s aspirations, not undermine existing investments and industries,” Saleh declared, reinforcing the call for policies that strengthen local manufacturing.
Adherence to Applicable Industry Regulations
PT Agrinas Pangan Nusantara was designated by the government to oversee the physical development of the Kopdes Merah Putih program, a national initiative designed to bolster the cooperative-based rural economy, in accordance with Presidential Instruction (Inpres) Number 17 of 2025. However, Saleh acknowledged that Agrinas must coordinate diligently with relevant ministries, notably the Ministry of Industry and the Ministry of Cooperatives, during the implementation phase.
“We have verified this directly. Both ministers were entirely unaware of the planned import of 105,000 commercial vehicles valued at Rp24.66 trillion—this is a substantial figure. Had this capital been allocated to procure domestic products, the added value and multiplier effect on the economy would have been immense,” the former Minister of Industry revealed, highlighting a significant oversight and missed opportunity for local economic stimulation.
Vehicle import activities are mandated to comply with existing regulations, specifically Minister of Industry Regulation Number 23 of 2021. This regulation outlines the procedures for licensing, development, and the technical requirements for the four-wheeled or more motor vehicle industry.
Implemented on September 1, 2021, this regulation serves as a vital framework for strengthening the structure of the national automotive industry, simultaneously promoting increased value addition and the utilization of local components. It comprehensively covers the scope of vehicle assembly industries, whether in completely knocked down (CKD) or incompletely knocked down (IKD) forms, as well as the manufacturing of components for four-wheeled or more vehicles. While previously issued CKD/IKD approvals remain valid until their expiration, industry players are required to align with the new standards stipulated in Permenperin 23/2021.
“The government also strongly emphasizes the imperative to deepen the industrial structure and enhance local content as a cornerstone of its import substitution strategy and efforts to bolster national competitiveness,” Saleh elaborated. Beyond licensing and industry development, this regulation introduces more stringent technical provisions, including mandatory requirements for carbon dioxide (CO₂) emission tests and vehicle fuel consumption. These stipulations are fully aligned with the national energy transition agenda and the ongoing development of electric vehicles within Indonesia. Through this comprehensive regulation, the government anticipates that the national automotive industry will not only grow in production volume but also advance in terms of technology, energy efficiency, and its crucial contribution to the green economy.
Summary
The Indonesian Chamber of Commerce and Industry (Kadin) strongly supports the House of Representatives’ decision to postpone the planned import of 105,000 pickup trucks from India by PT Agrinas Pangan Nusantara. This measure is considered vital to protect the national automotive industry from potential collapse and avoid issues related to after-sales service and spare parts for Kopdes Merah Putih. Deputy Speaker Sufmi Dasco Ahmad highlighted the necessity for comprehensive discussions, including an assessment of domestic manufacturing capabilities, before any final decision.
Local industry players voiced concerns that importing completely built-up (CBU) vehicles could severely harm the domestic automotive sector and contradict the government’s industrialization and economic growth targets. Kadin emphasizes that Indian producers should establish manufacturing plants in Indonesia to ensure fair competition and stimulate the local economy. Moreover, such import activities must adhere to Minister of Industry Regulation Number 23 of 2021, which aims to strengthen the national automotive industry structure, enhance local content, and promote import substitution.