An Indonesian government initiative to procure vehicles for villages nationwide is contributing to increased demand for Mitsubishi Fuso Truck and Bus and other commercial vehicle manufacturers.

The Japanese manufacturer transitioned from a single-shift operation to a two-shift system at its Jakarta plant in July as part of efforts to increase production capacity. Hundreds of temporary workers have been recruited to support the expansion. Mitsubishi Fuso recorded a 53% year-on-year increase in sales in Indonesia's commercial vehicle market during the January-June period of 2026. Earlier this year, state-owned agribusiness company Agrinas Pangan Nusantara placed an order for Canter light-duty trucks.

"We are operating at full factory capacity to meet the delivery deadline of the end of 2026," a marketing director at a local Mitsubishi Fuso sales company said.

Japanese manufacturer Hino Motors has also received an order for its 300 Series light-duty trucks. In response, the company is increasing its workforce and accelerating production. The increase in orders is linked to an initiative introduced by President Prabowo Subianto's administration to establish village cooperatives across the country that will provide food and other daily necessities at reasonable prices.

The programme, which has attracted scrutiny over the pace of its implementation, includes logistics improvements intended to support local agriculture and fisheries. The government plans to allocate IDR 80 trillion (US$ 4.46 billion) from the national budget to the project in 2026.

Agrinas serves as the operational arm of the policy and plans to procure commercial vehicles and pickup trucks for the transportation of agricultural and other goods.

The project has faced criticism from some quarters for allegedly sidelining domestic companies. India's Tata Motors and Mahindra & Mahindra, neither of which operates manufacturing facilities in Indonesia, have received orders for pickup trucks. Tata Motors has also received an order for light commercial vehicles.

Agrinas Chief Executive Officer Joao Mota has stated that procuring vehicles from India will reduce costs. However, it remains unclear whether the government will introduce provisions for the inspection and maintenance of these imported vehicles.

Indonesia's market for new vehicles, including both passenger and commercial vehicles, has contracted from previous peak levels as middle-class purchasing power has weakened. The country has also lost its position as Southeast Asia's largest automotive market to Malaysia. Indonesia's automotive industry has been calling on the government to introduce measures to support the market. However, critics argue that policy measures implemented to date have not been effective in stimulating demand.

"Although there is increased demand, it's only for this year," an executive at a Japanese commercial vehicle manufacturer said. "The market environment is not one to be optimistic about."