Domestic Pickup Production Could Boost Economy Significantly
- 20 Feb 2026 09:17 WIB
- Voice of Indonesia
RRI.CO.ID, Jakarta – Minister of Industry, Agus Gumiwang Kartasasmita, emphasized that strengthening domestic pickup truck production would generate significant economic impact for Indonesia. As an illustration, Agus explained that if the procurement of 70,000 units of 4x2 pickup trucks were fulfilled by locally manufactured products, it would create positive backward-linkage economic effects worth approximately Rp27 trillion.
According to him, meeting pickup vehicle demand through domestic production would ensure that economic value added and job absorption are enjoyed within Indonesia. Sub-sectors directly linked to pickup manufacturing include the tire industry, glass industry, battery (accumulator) industry, metal industry, leather industry, plastics industry, cable industry, electronics industry, and others.
“If all pickup vehicle needs are met through imports, the economic value added and employment benefits will be enjoyed by industries abroad. However, if domestic industries can meet the demand, then economic benefits, job creation, and national industrial strengthening will be felt at home,” Agus said in a statement in Jakarta on Thursday, February 19, 2026.
The minister noted that Indonesia’s automotive industry currently has a production capacity of around one million pickup units per year. Manufacturers include PT Astra Daihatsu Motor, PT Isuzu Astra Motor Indonesia, PT Mitsubishi Motor Krama Yudha Indonesia, PT Suzuki Indomobil Motor, PT SGMW Motor Indonesia, and PT Sokonindo Automobile.
“With this capacity, the national pickup vehicle industry is considered capable of meeting domestic market needs while strengthening Indonesia’s global automotive competitiveness,” he stressed.
Agus further stated that domestically produced 4x2 pickup trucks are highly competitive in terms of standards and quality compared to imported products. Local models have proven capable of operating across Indonesia’s diverse infrastructure conditions. These commercial vehicles have also been well received by the public and business players due to their reliable performance in supporting distribution and goods mobility.
However, he acknowledged that Indonesia does not yet produce four-wheel-drive (4x4) pickup models specifically designed for extremely heavy terrain, particularly in mining and plantation areas.
From an economic efficiency perspective, Agus added that maintenance costs for 4x4 pickups are relatively higher, spare parts and after-sales services are more limited, and resale values are lower compared to 4x2 pickups produced by domestic industries.
The development of the national commercial vehicle industry forms part of the government’s broader strategy to enhance industrial self-reliance, strengthen the national manufacturing structure, and create domestic economic value added and employment opportunities.
The Ministry of Industry has proactively advanced the national commercial vehicle sector through strategic measures, including increasing the use of domestic components, strengthening the automotive supply chain structure, developing the component industry, boosting investment, and enhancing mastery of vehicle manufacturing technology.
Agus added that the government consistently maintains the sustainability of the national automotive industry, including urging industry players to safeguard workforce stability amid global and domestic challenges. Excessive reliance on imports, he warned, could disrupt these efforts.
He also highlighted that national automotive industry development aligns with the industrialization policy direction consistently emphasized by President Prabowo Subianto, which underscores strengthening domestic industry as a key driver of economic growth and national competitiveness.
“The Ministry of Industry remains committed to strengthening the national automotive industry to become more innovative, competitive, and a main pillar in reinforcing industrial structure and national economic growth,” Agus concluded.
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