Regarding The Easing Direction Of TKDN, Here's Gaikindo's Answer

JAKARTA - The government plans to relax the Domestic Component Level (TKDN) policy, as stated by President Prabowo Subianto.

Responding to this, the Association of Indonesian Automotive Industries (Gaikindo) through the General Chairperson of Yohannes Nangoi revealed that the new policy was carried out carefully and carefully.

"Our auto industry has been building for decades, we don't want this industry to collapse and what is clear is that we urge it to be given the best," said Nangoi, when met in the Central Jakarta area, Wednesday, April 16.

He further said it was important to consider the long history of national automotive industry development, especially TKDN policies.

"We have built the automotive industry, not only for decades, we have built until the birth of Agya and Ayla with 92 percent of local components, this is of course a matter of consideration for the government," said Nangoi.

As is known, one of the TKD programs itself is a step to empower domestic industries to be stronger and more competitive. Thus, the government has set a minimum TKDN limit that must be met by a product.

The TKD policy itself also helps reduce dependence on imports, this policy also absorbs more labor, saves the country's foreign exchange, and increases the competitiveness of local products. The use of domestic products is not only a matter of economic interests but is beneficial for many things.