Moeldoko urges the TKDN regulation to be maintained, and even increased.

KatadataOTO – President Prabowo Subianto had intended to relax the local content requirement (TKDN). This was in response to the imposition of United States import tariffs.

Unfortunately, the plan drew many responses. One of them came from the Indonesian Electric Vehicle Industry Association (Periklindo).

“Actually, from the EV sector, we hope the TKDN is maintained or even increased,” said Moeldoko, Chairman of Periklindo at JIExpo Kemayoran, Jakarta some time ago.

According to Moeldoko, the regulation regarding TKDN must be strengthened to maintain the competitiveness of industry players in the country.

Photo : KatadataOTO

Especially for the domestic electric car and motorcycle market. Because it has the potential to be flooded with products from other countries.

“TKDN needs to be maintained so that the domestic industry can grow well,” Moeldoko added.

Furthermore, while Moeldoko asked for the TKDN rules to be strengthened, he also believes the policy regarding local components needs to be made flexible.

Especially for certain sectors. This way, it can truly maintain the competitiveness of electric motorcycle and car manufacturers.

“For sectors that have high technology that we cannot yet produce, flexibility is needed,” stressed the Chairman of Periklindo.

In Line with Gaikindo

Periklindo's statement is in line with the Association of Indonesia Automotive Industries (Gaikindo) previously. According to them, the discourse on relaxing TKDN is potentially detrimental.

Gaikindo also plans to hold a meeting with the government to discuss this matter.

This step is being taken to defend the country's automotive industry amidst the current situation.

"The automotive industry (in Indonesia) has been built for decades. We don't want this industry to collapse," said Yohanes Nangoi, Chairman of Gaikindo, on a separate occasion.

Nangoi emphasized the importance of considering the long history of the domestic automotive industry's development.

Therefore, they want to discuss with the government to address the discourse on relaxing TKDN in the near future.

"What is clear is that we urge that the policy taken (by the government) be the best one," Nangoi concluded.

Photo : Daihatsu

Furthermore, Nangoi also highlighted the success of the national industry in increasing local content. One example is the presence of the Toyota Agya and Daihatsu Ayla.

Both of these low-cost green car products, or commonly called LCGC, have already achieved a TKDN of 92 percent.

"Achievements like the Agya and Ayla must be a consideration in formulating policies," Nangoi concluded his statement.