Indonesia has temporarily halted its plans to import 105,000 pickup trucks and commercial vehicles from India following political protests and concerns over the impact on the domestic automotive industry.
Imports aim to support rural logistics and food security
The proposed imports were part of President Prabowo Subianto’s Merah Putih Village Cooperative Programme, which aimed to strengthen rural cooperatives across the country. The vehicles were to be purchased by state-owned PT Agrinas Pangan Nusantara and deployed to support logistics, food storage, fertilizer distribution and agricultural supply chains in villages across the country.
Under the plan, India’s Mahindra was to supply 35,000 Scorpio pickup trucks, while Tata Motors was set to export 35,000 4×4 pickup trucks and 35,000 six-wheeler Commercial Ultra T.7 trucks. The total order of 105,000 vehicles will be one of the largest export deals for both the Indian automakers.
Indonesian parliament demands review
However, the proposal was immediately criticized by Indonesian industry stakeholders and lawmakers. Deputy Speaker of Parliament Sufmi Dasko Ahmed called for the plan to be postponed, saying a full review should be conducted after President Prabowo returns from a trip abroad. The government has since agreed to temporarily delay imports pending further discussions between MPs and the executive.
Finance Minister Purbaya Yudhi Sadeva supported the postponement, noting that the President has consistently emphasized strengthening domestic industry. Industry Minister Agus Gumiwang Kartasasmita also highlighted that Indonesia’s automotive sector has the capacity to produce about 1 million pickup trucks annually. According to the ministry, producing 70,000 pickup trucks domestically could generate economic benefits of about Rp27 trillion through backward linkages and job creation.
The controversy comes at a time when Indonesia’s automotive market is under pressure. Car sales declined 7.2% last year to 803,687 units amid weak household spending and cautious lending conditions. Major manufacturers with production bases in Indonesia, including Toyota, Suzuki and Mitsubishi, are still working to regain pre-pandemic momentum.
More than 1,000 Mahindra pickups have already arrived in Jakarta
Despite the ban, more than 1,000 Mahindra Scorpio pickup trucks have already reached Jakarta. PT Agrinas Pangan Nusantara has said that it will follow parliamentary and government instructions, and that any units that have arrived will wait for official instructions before being distributed.
The financing of the purchase has also attracted attention. The government reportedly planned to finance vehicle purchases through a state-backed mechanism About Rp40 trillion per year More than six years. At present, the large-scale import scheme is under review. The final decision will likely depend on political discussions, economic considerations and the government’s broader strategy of balancing rural development goals with domestic industrial priorities.