ITB Lecturer Warns Against Rushing Policy Shift on Indonesia's Domestic Certification

April 16, 2025 | 05:06 pm

TEMPO.CO, Jakarta - The Indonesian government's discourse to relax the Domestic Component Level (TKDN) policy in response to United States President Donald Trump's reciprocal tariffs has garnered various responses. Agung Harsoyo, a lecturer at the School of Electrical Engineering and Informatics at Bandung Institute of Technology (ITB), believes that relaxing the TKDN policy must be done carefully, not hastily.

Agung emphasized that the main purpose of the TKDN policy is to strengthen the nation's ability to produce goods and services. He said, "With TKDN, it also stimulates international cooperation, a tangible example is the fabrication of mobile phones by well-known brands," when contacted by Tempo on Wednesday, April 16, 2025.

Implementing TKDN, Agung said, has real impacts. One of them is seen in the mobile phone industry, which is finally able to absorb local labor and improve the welfare of the community. In addition, the TKDN policy is expected to encourage an increase in the capability of human resources in the country to produce similar goods and services domestically.

Agung added that TKDN's current policy is not unilateral or abrupt. "Its pros and cons have been considered, its risks anticipated, and it has been harmonized with existing regulations," he said.

According to Agung, a thorough study is needed regarding this plan to change the TKDN policy. However, he understands the need for swift action from the government in responding to global dynamics. "From the perspective of a quick response, the President's statement about TKDN is a strategy to respond to Trump's policy. This is a diplomatic strategy. Regarding TKDN legislation/regulation, I propose not to rush to change the TKDN policy."

The Indonesian government is taking a diplomatic route in response to the imposition of a 32 percent import tariff by U.S. President Donald Trump on Indonesian products. One point that will be brought up in the negotiations is offering to relax Non-Tariff Measures.

Previously, the Coordinating Minister for the Economy, Airlangga Hartarto, said the sector that the U.S. has requested to relax its TKDN policy is Information and Communication Technology (ICT).

Annisa Febiola contributed to this article.

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