Suzuki Speaks Out on Government's Plan to Relax TKDN Rules

KatadataOTO – President Prabowo Subianto plans to relax the regulations for TKDN (Local Component Level) for all products marketed in Indonesia.

This is the government's response regarding the new import tariffs from the United States set by Donald Trump.

However, President Prabowo's plan has drawn many responses. One of them came from SIS ( Suzuki Indomobil Sales).

"Right now, this is just an initial statement. We are confident there will be a more in-depth study and a more concrete strategy from the government," said Dony Saputra, Deputy Managing Director 4W SIS, when met in Karawang on Tuesday (22/04).

Photo : Courtesy

He further explained that it is not yet possible to discuss the impact of the plan to relax TKDN regulations.

Considering the government has not yet decided whether to implement it or not. And right now, there are no regulations regarding this matter.

“Actually, we will be able to see the impact depending on how detailed the regulation for relaxing (TKDN) will be. Whether there are conditions, prerequisites, or what it will be like,” he continued.

So, Suzuki is still waiting to see the extent of the TKDN relaxation plan that will be implemented by the government.

Nevertheless, Suzuki believes that President Prabowo Subianto and his cabinet will provide the best for the automotive industry players.

“We are sure and believe that the government will have a plan to protect existing domestic investments,” Dony affirmed.

Dony also hopes the government will provide the best direction for the current production of domestic goods.

For your information, some time ago President Prabowo Subianto was looking for ways to anticipate the negative effects of the new Donald Trump administration.

For example, by directing the ministers to make the TKDN rules 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.

Photo : KatadataOTO

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

This makes investors overlook Indonesia. They then tend to be more interested in investing their money in other countries.

Based on the facts above, President Prabowo Subianto has requested that the mechanism for implementing TKDN be changed. For example, by possibly providing incentives.