Maka Motors Supports the Proposal to Relax Domestic Content Requirements, But With Conditions

KatadataOTO – President Prabowo Subianto plans to relax the TKDN (Local Content Requirement) regulations. This is being done in response to the United States' import tariff policy.

The proposal has since drawn many responses. Such as from Maka Motors, one of the EV (Electric Vehicle) manufacturers in the country.

They stated their agreement if President Prabowo wants to relax the TKDN regulations for future products.

“We also support the government's plan to replace the TKDN regulations with an incentive scheme,” said Raditya Wibowo, CEO and Founder of Maka Motors to KatadataOTO, Friday (11/04).

Photo : KatadataOTO

According to him, if the plan is implemented, it will bring a number of benefits. Such as boosting public purchasing power.

This will make electric two-wheelers more popular. Thus increasing the number of electric motorcycle users in the country.

“It will also support national economic growth and reduce user operational costs,” Raditya continued.

Additionally, providing incentives for electric motorcycle purchases is also said to be able to reduce the government's fuel (BBM) subsidy burden.

However, Maka Motors is asking for clarity regarding the provision of incentives after the government relaxes the TKDN regulations.

“We hope for certainty (on the incentives) to be provided this year,” Raditya affirmed.

For your information, President Prabowo Subianto previously instructed his ministers to make the TKDN regulations more flexible.

“We have to be realistic, if TKDN is forced, we will end up being less competitive. I strongly agree that TKDN should just be flexible,” Prabowo said on a separate occasion.

The number one person in Indonesia assesses that the current TKDN regulations seem too forced.

So investors are not looking at Indonesia. They then tend to be more interested in investing their money in other countries.

Therefore, Prabowo Subianto has requested that the implementation mechanism of TKDN be changed. For example, with the possibility of providing incentives.

“Please, my aides, my ministers, let's be realistic. Let's make the TKDN realistic,” he said.

Photo : Antara

Meanwhile, regarding concerns about domestic product development, he believes it can still be done in other ways.

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

On the other hand, Prabowo also intends to deregulate or remove policies that are deemed no longer effective for economic development and the welfare of the people.