Indonesia has paused a planned purchase of 105,000 lorries from Indian manufacturers Tata Motors and Mahindra & Mahindra, following concerns raised by domestic policymakers and business associations, Cooperatives Minister Ferry Juliantono announced Thursday.
The order, slated for employ in President Prabowo Subianto’s initiative to establish over 80,000 community cooperatives across the archipelago, had been intended to support village-level commerce and bolster food security. The cooperatives are envisioned as hubs for essential goods, including cold storage and subsidized fertilizer, and as potential lenders to rural residents.
Minister Juliantono characterized the pause as “the right step to avoid further controversy,” adding that a meeting between the government and lawmakers will be scheduled to determine a path forward. President Subianto returned to Indonesia Friday after overseas travel, according to reports.
The proposed deal had drawn criticism from Indonesian industry representatives, who argued that importing such a large volume of vehicles would undermine the government’s efforts to promote domestic industrialization and job creation. The Indonesian automotive industry currently possesses the capacity to produce approximately one million pick-up trucks annually, according to the industry ministry.
Industry Minister Agus Gumiwang Kartasasmita stated that domestic production of around 70,000 of the lorries would generate an economic benefit of 27 trillion rupiah (approximately $2 billion USD) and create employment opportunities within Indonesia.
Mahindra & Mahindra had previously announced that the potential order for 35,000 Scorpio Pik Ups represented its largest export order to date, intended to “enable village-level commerce” and support Indonesia’s food security goals. Tata Motors similarly described its order of 35,000 Yodha pick-ups and 35,000 Ultra T.7 lorries as its largest to Indonesia.
Neither Mahindra nor Tata Motors have publicly commented on the suspension of the deal. Agrinas Pangan Nusantara, the state-owned company tasked with procuring the vehicles as part of a broader effort to enhance food self-sufficiency, has not issued a statement.
Parliament deputy speaker Sufmi Dasco Ahmad, a member of President Subianto’s Gerindra Party, had earlier called for a halt to the imports until the president’s return from travel. Indonesian car sales declined by 7.2 percent in 2025, falling to 803,687 units, according to data compiled by Bloomberg, reflecting weak household spending and cautious lending practices.
