Nissan's Reaction to Prabowo's Plan to Relax TKDN Regulations

KatadataOTO – The government plans to relax the TKDN (Local Content Requirement) regulations. This is in response to the new United States import tariffs.

Domestic industry players are also trying to respond to this discourse. As stated by NMDI (Nissan Motor Distributor Indonesia).

“Overall, we are waiting for the detailed derivative regulations,” said Bima Aristantyo, Head of Sales and Product at NMDI, to reporters in the South Jakarta area on Tuesday (15/04).

According to Bima, Nissan will adjust if the government truly wants to make the TKDN rules more flexible.

Photo : KatadataOTO

He further stated that if the new TKDN policy is clear, then the Japanese manufacturer can determine what steps will be taken.

“Previously, it was clear, for example, 40 percent or something. We will need to make adjustments there,” Bima continued.

For your information, if the TKDN regulations are relaxed, it is said that many parties will reap positive impacts.

Especially for car manufacturers who still sell four-wheeled vehicles with CBU (Completely Built Up) status domestically.

As a reminder, some time ago President Prabowo Subianto was looking for ways to anticipate the negative effects of Donald Trump's new rules.

For example, by instructing ministers to make the TKDN regulations more flexible than before.

“We have to be realistic, forcing TKDN ultimately makes us less competitive. I strongly agree that TKDN should just be flexible,” said Prabowo Subianto on the official website of the Presidential Secretariat.

The number one person in Indonesia revealed that the currently enforced TKDN regulations seem too forced.

Making investors overlook Indonesia. And then they tend to be more interested in investing their money in other countries.

Based on the facts above, President Prabowo Subianto requested that the mechanism for TKDN implementation be changed. For example, with the possibility of providing incentives.

“Please, my aides, my ministers, just be realistic. Just make the TKDN realistic,” Prabowo emphasized.

Photo : KatadataOTO

On the other hand, to address concerns about domestic product development, he believes it can still be done in other ways.

Take for example the development of HR (Human Resources), especially in education, including science and technology.

Lastly, he also intends to carry out deregulation or eliminate policies that are deemed no longer effective for economic development and the people's welfare.