Indonesia’s new leader greenlights plan to revive ambitions to build national car

Prabowo Subianto, the new president of Indonesia, is reigniting the country’s decades-long ambition of building a national car, but critics warn the plan might waste public funds.

Prabowo has announced that the Maung Garuda, an all-terrain vehicle developed by state-owned arms manufacturer PT Pindad, will now serve as the official vehicle for ministers and high-ranking officials.

“I have planned that all ministers, deputy ministers, and officials – perhaps at the governor, regent, or mayor level – should use vehicles made by Indonesia,” Prabowo said in an interview with broadcaster SCTV on Oct. 27, a week after he was inaugurated as the country’s eighth president.

“For the sake of national honor and pride, we should be able to use our own products,” he added.

Prabowo’s preference for the Maung Garuda was on full display as his motorcade rode from the parliament building to the presidential palace on his inauguration day, where he arrived in the vehicle, which resembles a Humvee. 

Presidential spokesman Hasan Nasbi did not respond to requests for details about the government’s recent order for 10,000 Maung Garuda vehicles, or when officials could expect to receive them. 

However, Presidential Staff Office head Anto Mukti Putranto said that 50% of the order was set to be completed within 100 days.

Abraham Mose, the director of Pindad, said the company was capable of producing the Maung car for use as operational vehicles for ministers.

A 4x4 military vehicle, the Maung Garuda is tailored to meet the specific needs of Indonesian military and security forces, but PT Pindad said it would soon produce a civilian version. 

“We must be able to do it because the necessary facilities and infrastructure will be prepared. In principle, Pindad has already started, and the results are already available and in use,” Abraham told Antara, the state news agency, on Nov. 9.

Mixed reactions

But Prabowo’s move might drain government funds, critics argue. 

“There’s no urgency for officials to change vehicles – they already have cars,” said Riyanto, an analyst at the University of Indonesia’s Institute for Economic and Social Research.

“This appears more symbolic than practical and could lead to budget inefficiencies,” Riyanto told BenarNews, adding that PT Pindad should first focus on building a reliable local supply chain for critical automotive parts.

Some analysts agree. 

For the Maung Garuda to be commercially viable, Pindad must secure licensing agreements for foreign components, a process that is legally and logistically complex, said Agus Pambagio, a public policy expert.

“Until these things are sorted out, the idea of a national car remains a political gimmick,” Agus said.

But for other analysts, Prabowo’s announcement has spurred hope that Indonesia may finally reach its longstanding goal of building a sustainable automotive industry.

“I hope that this initiative will serve as a catalyst for creating a truly Indonesian national car – one that not only serves as a local product but can also compete globally,” said Martinus Pasaribu, an automotive analyst at the Bandung Institute of Technology. 

However, he warned that major challenges lay ahead.

“PT Pindad must scale up production, improve quality, and sustain innovation,” he told BenarNews, adding that achieving these goals could create jobs and bolster local manufacturing.

Djoko Setijowarno, deputy chair of the group Indonesian Transportation Society, said Prabowo’s move could be a potential catalyst for gradual growth in the domestic automotive industry. 

He also said PT Pindad should consider diversifying into other vehicle types, such as buses, which would serve the broader public interest. 

“A domestic product isn’t going to be perfect overnight, and not everything will be made here right away,” Djoko told BenarNews. “It’ll happen gradually.”

The quest for a national car

Indonesia’s automotive market is the largest in Southeast Asia, with annual sales exceeding 1 million vehicles. 

Japanese brands such as Toyota, Daihatsu, and Honda have long held sway, capturing over 90% of the market share. 

This entrenched presence poses a significant hurdle for any aspiring national car, including the Maung Garuda.

In the 1990s, President Suharto, Prabowo’s former father-in-law, launched the Timor car project, importing South Korean-made Kia vehicles and rebadging them as a national brand. 

The initiative ultimately faced a backlash, including a legal challenge from Japan at the World Trade Organization, and was discontinued in 1998 due to trade policy violations and economic challenges.

More recently, the Esemka car, a similarly ambitious project introduced with much fanfare by Prabowo’s predecessor, Joko “Jokowi” Widodo, failed to gain widespread adoption because of quality concerns and production challenges.

For Prabowo, a national car represents more than just an industrial milestone; it’s a pathway to economic progress. 

Prabowo expressed frustration over the country’s inability to produce its own vehicles and technology, despite being blessed with abundant natural resources.

“Frankly, I cannot accept that we as the world’s fourth largest nation, endowed by God Almighty with immense wealth and all the elements to become a developed country, can’t make our own cars, motorcycles, or computers,” Prabowo said earlier this month.

But according to Sigit Santosa, PT Pindad’s director of technology and development, Indonesian automakers at this time cannot manufacture vehicles entirely within the country.

“It’s normal to collaborate with global companies for parts we can’t produce locally, like engines and transmissions,” Sigit said in a statement. “We’re building the national automotive industry step-by-step.”

For Indonesia to establish a competitive automotive industry, Pasaribu urged coordinated efforts across sectors. 

“Strategic steps from the government, such as fiscal incentives for automotive research and development, a conducive regulatory environment, and support for intellectual property rights, are crucial,” he said.

Some Indonesians expressed hope the Maung Garuda could be a good step towards establishing a domestic automotive industry.

“As a starting point, it’s a good effort,” Rozi Kusmadi, a 38-year-old citizen, told BenarNews, noting that many important components are still being sourced from abroad.

“As long as, over time, it can be studied and produced locally.”