Indonesia’s automotive industry is facing scrutiny following plans to import 105,000 pickup trucks from India, a move that has drawn concern from the country’s automotive association.
PT Agrinas Pangan Nusantara intends to utilize the imported pickups to support operations for the Koperasi Merah Putih cooperative. The large-scale import has sparked debate, given the domestic automotive industry’s capacity to produce similar vehicles with significant local content.
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The Gabungan Industri Kendaraan Bermotor Indonesia (Gaikindo) has identified seven domestic manufacturers currently capable of producing pickup trucks, including:
1. PT Suzuki Indomobil Motor
2. PT Isuzu Astra Motor Indonesia
3. PT Krama Yudha Tiga Berlian Motor
4. PT SGMW Motor Indonesia (Wuling Motors)
5. PT Sokonindo Automobile (DFSK)
6. PT Toyota Motor Manufacturing Indonesia (TMMIN)
7. PT Astra Daihatsu Motor
Gaikindo estimates that its members collectively possess an annual production capacity exceeding 400,000 pickup trucks, a capacity that is currently underutilized. The association notes that these domestically produced vehicles are primarily 4×2 models and feature a local content level of over 40%.
These 4×2 commercial vehicles already meet the needs of consumers throughout Indonesia, supported by a widespread network of service and after-sales support centers. Production of 4×4 vehicles is also possible, though would require preparation time.
“Actually, Gaikindo members and their supporting industries, including the automotive component industry represented by GIAMM, have the production capacity to meet these needs, but sufficient time is needed to fulfill the required quantity and specifications,” stated Gaikindo Chairman Putu Juli Ardika.
The planned import comes at a time when the Indonesian automotive industry is experiencing a downturn, raising concerns that increased imports could further weaken the domestic market. The decision highlights the ongoing debate surrounding protectionist measures versus open trade policies in the region.
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