Indonesia has temporarily paused its plan to import 105,000 pickup trucks and commercial vehicles from India following political pushback and concerns over the impact on the domestic automotive industry.
Imports Meant to Support Rural Logistics and Food Security
The proposed imports were part of President Prabowo Subianto’s Merah Putih Village Cooperative programme, aimed at strengthening rural cooperatives across the country. The vehicles were to be procured by state-owned PT Agrinas Pangan Nusantara and deployed to support logistics, food storage, fertilizer distribution and agricultural supply chains in villages nationwide.
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-wheel commercial Ultra T.7 trucks. The total order of 105,000 vehicles would have marked one of the largest export deals for both Indian automakers.
Indonesian Parliament Calls for Review
However, the proposal quickly drew criticism from Indonesian industry stakeholders and lawmakers. Deputy Speaker of Parliament Sufmi Dasco Ahmad called for the plan to be postponed, stating that a full review should be conducted once President Prabowo returned from his overseas visit. The government has since agreed to temporarily delay the imports pending further discussions between lawmakers and the executive.
Finance Minister Purbaya Yudhi Sadewa 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 around 1 million pickup trucks annually. According to the ministry, producing 70,000 pickup trucks domestically could generate economic benefits of approximately 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.
Over 1,000 Mahindra Pickups Already Arrive in Jakarta
Despite the pause, more than 1,000 Mahindra Scorpio pickup trucks have already arrived in Jakarta. PT Agrinas Pangan Nusantara has stated it will comply with parliamentary and government directives, and any units that have arrived will await official instructions before being distributed.
The financing of the procurement has also attracted attention. The government had planned to fund the vehicle purchases through state-backed mechanisms, reportedly involving around Rp40 trillion per year over six years. For now, the large-scale import plan remains 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.
