Heaptalk, Jakarta — The Indonesian Electronics Entrepreneurs Association (Gabel) has called for a more tailored approach to the implementation of the Domestic Component level (TKDN) policy, particularly for electronic products outside the scope of mobile phones, handheld computers, and tablets (HKT).
“TKDN implementation should be expanded through sectoral policies where each category of electronic equipment, beyond HKT, has its own set of guidelines,” said Gable’s Secretary General, Daniel Suhardiman. (04/13)
Daniel emphasized that a sector-specific TKDN framework is crucial for increasing industrial utilization and ensuring that Indonesia remains an attractive destination for investment. He warned that a blanket or overly relaxed approach to TKDN could harm domestic manufacturing and trigger a shift in investment to other countries.
He also urged the government to prioritize domestic products in state and regional budgets (APBN and APBD), arguing that this would strengthen value creation within the country. President Prabowo Subianto recently responded to national economists’ recommendations on Indonesia’s role in global industrialization. Speaking at the National Economic Dialogue in Jakarta on Tuesday (April 8), the President called for a more flexible TKDN policy to safeguard Indonesia’s competitiveness.
“We must be realistic. If we force TKDN, we risk losing competitiveness. Let’s make it flexible,” said Prabowo.
He noted that the current implementation appears too rigid, potentially deterring investors from choosing Indonesia as a manufacturing base. He proposed rethinking the policy, suggesting that incentives might be a better alternative.
“Maybe it should be replaced with incentives. I am asking my ministers—let’s be realistic about TKDN,” Prabowo added.
The President also addressed concerns that a more flexible policy could undermine domestic product development, asserting that there are plenty ways to promote local innovation and manufacturing. As Indonesia balances its industrial policies with global economic pressures, the future of TKDN remains a key issue at the intersection of national development, investment, and competitiveness.
