Government: Automotive Industry Has a Significant Production

RRI.CO.ID, Jakarta – Indonesian government encourages self-sufficiency in commercial vehicle production. The Ministry of Industry reported on Thursday, 19 February 2026, that the nation’s automotive industry now possesses a significant production capacity for pick-up trucks, reaching approximately 1 million units per year.

According to the official press release, Minister of Industry, Agus Gumiwang Kartasasmita, highlighted the "backward linkage" created by prioritizing domestic production over imports. He noted that fulfilling a demand of 70,000 pick-up units (4x2 category) through local manufacturing contributes approximately IDR 27 trillion (USD 1.7 billion) to the national economy.

This ripple effect benefits a wide array of sub-sectors, ranging from the tire, glass, and battery industries to more complex sectors like electronics, plastics, and metal manufacturing.

"If these needs can be met by domestic industries, the economic benefits, job creation, and strengthening of the national industry will also be felt domestically," Minister Agus conveyed in a statement in Jakarta on Thursday. He warned that relying on imports would essentially export these economic benefits to foreign industries, whereas local production strengthens the national manufacturing structure and secures the domestic workforce.

The Ministry emphasized that Indonesian-made 4x2 pick-ups are highly competitive in terms of quality and durability, specifically engineered to handle the country's diverse and often challenging infrastructure. These vehicles have gained widespread acceptance among business players for their reliability in distribution and goods mobility.

While Indonesia still relies on imports for specialized 4x4 heavy-duty pick-ups used in extreme mining and plantation terrains, the Minister pointed out that domestic 4x2 models offer superior economic efficiency.

These local units provide lower maintenance costs, better spare part availability, and higher resale value compared to their specialized imported counterparts. This industrial push aligns with the strategic vision of President Prabowo Subianto, who has consistently advocated for domestic industrialization as the primary engine for national economic growth.

In addition, by focusing on local content and supply chain integration, Indonesia aims to shield its automotive sector from global volatility while maintaining labor stability.