Academic: Indonesia's Plan to Import 105,000 Pickups Is Irrational

February 25, 2026 | 11:04 pm

TEMPO.CO, Jakarta - Ahmad Ma’ruf, an economics lecturer at Universitas Muhammadiyah Yogyakarta (UMY), has criticized the Indonesian government’s plan to import 105,000 pickups from India to support the Merah Putih Village Cooperative (KDMP).

The government says the large-scale import is intended to accelerate the strengthening of village cooperatives.

“This policy needs to be reassessed from the perspective of economic rationality, its impact on the trade balance, and its potential bias against domestic industries,” Ma’ruf said on Wednesday, February 25, 2026.

Ma’ruf argued that the import policy is economically irrational in relation to the KDMP program.

“The KDMP is a strategic initiative that should not be implemented blindly. Not all cooperatives require vehicles with such specifications,” he said.

He stressed that large-scale procurement should be an opportunity to strengthen the national automotive industry.

“Ordering similar vehicles from domestic manufacturers would generate far greater economic value,” he added.

Ma’ruf noted that procurement could still be conducted openly through bidding or auction systems, with a preference for domestic products.

“A rational policy does not close competition but ensures public funds deliver the maximum impact for the national economy,” he said.

He also highlighted the potential effect on Indonesia’s trade balance.

“Not a pseudo-surplus from exporting raw commodities, but a healthy surplus. How many trillions of rupiah would leave the country if this import proceeds? It would weaken our foreign exchange reserves,” Ma’ruf warned.

According to him, the national automotive industry could miss substantial opportunities from public spending. In the long term, such a move could contradict the government’s push for economic self-reliance.

Ma’ruf further cautioned that the large-scale import could put pressure on the rupiah and affect the stability of Indonesia’s balance of payments and foreign exchange reserves.

He suggested that the government review the import plan and immediately engage with domestic automotive manufacturers to identify a more rational and strategic solution.

“The most rational economic step would be to cancel the import and collaborate with the domestic industry. Quick and strategic solutions can be discussed together. Business is business, but it must also uphold ideology and idealism,” Ma’ruf said.

Read: Agrinas Explains Urgency of Procuring Vehicles for Village Cooperatives

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