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View all search resultsGovt under pressure to halt imports of Indian vehicles
Local businesses has slammed the plan and urged the government to scrap the proposal, arguing that domestic manufacturers are fully capable of meeting the demand.
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A man walks past a Tata Motors dealership on Wednesday in the Kramat area of Central Jakarta. Indonesia has decided to import 105,000 cars from India through the Red and White Rural Cooperatives (KDMP) program. (JP/Iqro Rinaldi)
H
ouse of Representatives Deputy Speaker Sufmi Dasco Ahmad said on Monday that he had conveyed a message to the government to delay the plan to import 105,000 commercial vehicles from India, worth around Rp 24.66 trillion (US$1.46 billion), for the Red and White Rural Cooperatives (KDMP) program. According to him, President Prabowo Subianto would discuss the details of the proposal after completing his overseas working visit.
“So, regarding the plan to import 105,000 pick-up trucks from India, I have conveyed a message to the government that the plan should be temporarily postponed, considering that the President is still abroad,” Dasco said at the Senayan Legislative Complex in Central Jakarta, on Monday, as quoted by Detik.
The statement came after complaints from local businesses, which slammed the plan and urged the government to scrap the proposal. They argue that domestic manufacturers are fully capable of meeting the demand, warning that proceeding with the imports could further strain an already weakened auto sector.
The Indonesian Employers Association (Apindo) said the plan should be comprehensively reevaluate, given its scale and strategic implications for the national automotive industry, which is currently grappling with weakening domestic demand.
“Procurement [of vehicles] must be truly based on real operational needs in villages and carefully consider the strategic consequences for the national industry, especially the automotive sector,” Apindo chairwoman Shinta Kamdani told The Jakarta Post on Monday.
She said industry data showed that national production capacity for pick-up vehicles reached between 400,000 and 1 million units per year, with most locally produced models already meeting domestic component requirements (TKDN) of above 40 percent.
However, this capacity had remained underutilized in recent years because of sluggish market conditions.
