February 24, 2026 | 05:53 pm
TEMPO.CO, Jakarta - Indonesia’s largest labor union has warned that a plan to import 105,000 vehicles from India could trigger layoffs in the domestic automotive industry.
Said Iqbal, president of the Labor Party and the Confederation of Indonesian Trade Unions (KSPI), said the imports would reduce production at local factories and potentially lead to contract terminations and job cuts.
“We from KSPI and the Labor Party strongly demand a halt to the import of 105,000 vehicles from India. Cancel it,” Iqbal said during a virtual press conference on Tuesday, February 24, 2026.
Concerns Over Domestic Industry
Iqbal noted that Japanese manufacturers such as Isuzu and Daihatsu have long invested in Indonesia, producing commercial vehicles and employing local workers.
He questioned why the government would opt to import vehicles from India despite the established presence and technological capabilities of existing manufacturers. Iqbal also criticized what he described as poor inter-ministerial coordination that allowed the plan to move forward, sparking public backlash.
“Indonesian workers’ tax money is being used to benefit workers abroad. What kind of thinking is that?” he said.
Iqbal warned that factory workers are already facing job insecurity, citing the recent layoff of around 400 outsourced workers at a food manufacturing company. He said automotive workers now face similar risks.
He argued that if vehicle procurement were redirected to domestic production, it could create jobs for up to 10,000 workers, even if manufacturing took six months to a year.
Procurement Plan Under Scrutiny
The imports involve completely built-up (CBU) vehicles ordered by state-owned firm PT Agrinas Pangan Nusantara, which was tasked with supporting the government’s Red and White Cooperative program.
The company ordered 35,000 Mahindra Scorpio pickup units from Mahindra and 70,000 trucks from Tata Motors, with a total budget of Rp24.66 trillion.
Cooperatives Minister Ferry Juliantono said the import plan does not fall under his ministry’s authority. However, he confirmed that procurement for the Red and White Cooperative has been postponed pending President Prabowo Subianto’s return to Indonesia.
“It is not within the authority of the Ministry of Cooperatives, so it has been decided to postpone it until the President returns,” Ferry said in Jakarta on February 24.
The postponement followed a request from the House of Representatives after public criticism emerged. Chief executive Joao Angelo De Sousa Mota said PT Agrinas would comply with whatever decision is made by lawmakers and the government.
“We are obedient, loyal, and dedicated to the country and the people,” he said on Monday, February 23, as quoted by Antara.
Read: DPR Clarifies Alfamart-Indomaret Closure Rumors for Red and White Cooperatives
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