Minister of Industry to Facilitate Issuance of Domestic Content Requirements (TKDN) to Maintain Competitiveness

KatadataOTO – In the midst of a difficult situation like the current one, the government is preparing various strategic steps to maintain competitiveness, especially for automotive industry players.

Recently, the Minister of Industry admitted that they are discussing plans to reform the issuance of TKDN (Local Content Level).

“This TKDN reform will have a major impact on the business and investment climate,” said Agus Gumiwang Kartasasmita, the Minister of Industry, during the launch of the Polytron G3 electric car in Jakarta on Tuesday (06/05).

Agus emphasized that the decision was made to create a more supportive investment climate and to facilitate business activities in the country.

Photo : KatadataOTO

This is believed to ease the burden on producers who want to register the TKDN for their products.

“Later, the calculation process will be easier, faster, and the TKDN certification cost will be much cheaper,” the Minister of Industry added.

Unfortunately, Agus Gumiwang has not yet detailed their plans for the issuance reform that will take effect in the near future.

However, he confirmed that the Ministry of Industry has held a series of intensive internal discussions. They are now accelerating the finalization of the new regulation draft.

“We have discussed it at length many times. Today we will continue the meeting at 3 o'clock to speed up the discussion,” he said.

Once the new draft regulation is ready, the Minister of Industry plans to open it for public review, involving various stakeholders in the country.

Such as business players, the media, and the general public. They are expected to provide input on the proposed TKDN reform concept.

“We are discussing reforming the governance of its business processes. Perhaps what used to take a year, we want to speed up to three months, then to 10 days,” the Minister of Industry affirmed.

Not an Answer to US Import Tariffs

On the other hand, the Minister of Industry denied that the decision was made in response to the new import tariffs imposed by the United States on Indonesia.

According to Agus, this step was taken long before Donald Trump established the new policy.

Photo : Indomobil

“We started discussing the TKDN reform in early February, even long before April 1,” said Agus.

So, the Minister of Industry ensures that the TKDN issuance reform is truly their effort to facilitate domestic industry players.

“This is not because we are just following a trend or due to pressure from anyone. But because we feel it is necessary to improve efficiency and ease in the domestic production process,” Agus Gumiwang concluded his statement.