Here's Minister Of Industry Agus' Response To US Goods Entering RI Free Of TKDN

JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita opened her voice regarding products from the United States (US) which are said to be free to enter Indonesia without having to meet the requirements for the Domestic Component Level (TKDN).

This provision is part of a trade agreement between Indonesia and the US which was announced recently.

Agus emphasized that it is necessary to pay close attention to the context of the TKDN freedom requested by the US.

"So, if the issue of TKDN requested by the American side, we must know which one. Because maybe they are not needed by TKDN. It is not necessary, because there is no such policy," Agus said, written Friday, July 25.

According to Agus, the negotiating team still prioritizes national interests and maintains existing regulations.

"The government negotiating team, first he will continue to pay attention to what is our interest as a nation. Second, of course, we must also protect these regulations, we must guard them," he said.

The former Minister of Social Affairs explained that the provisions of TKDN are part of the non-tariff or non-tariff barrier barrier (NTB), namely policies other than tariffs or import duties implemented by a country.

"So, there is indeed a lot that America wants. Including what we read there are issues about non-taiff barriers, we call TKDN. Well, this must of course be clear that TKDN certificates are only needed in two ways," he said.

First, said Agus, TKDN is required if products want to be included in state spending, either through the State Revenue and Expenditure Budget (APBN) or the Regional Revenue and Expenditure Budget (APBD). This is regulated in government regulations.

"It has to be at least 40 percent, later the goods will enter the e-catalog," explained Agus.

Second, he continued, TKDN is needed if there are rules that require the value of certain local components so that goods get distribution permits.

"If there is a regulation or regulation requiring a certain TKDN value, for him to get a distribution permit. Well, in Indonesia there are only two, namely companies that want to have a distribution permit for HKT and medical devices. He must have a TKDN certificate in order to obtain a distribution permit," he explained.

Furthermore, Agus gave an example, negotiations with Apple regarding iPhone products some time ago.

"If media friends follow when we negotiate so hard with Apple, that's because it's in the rules, HKT products that want to get a distribution permit must have a TKDN value of 40 percent. Apart from the two products, there is no need for their TKDN certificate. There is no such need," he concluded.

Previously, the White House announced a trade agreement with Indonesia, one of which included removing non-tariff barriers for US exports.

In a document released Tuesday, July 22, local time, the US said that Indonesia would free US companies from the obligation to meet local content requirements or known as TKDN.

It is known, TKDN is a non-tariff obstacle component that has been used by Indonesia to protect the national industry.

TKDN is also shown to attract investment from manufacturers in the country.

"This includes releasing companies and goods from local content requirements," wrote a statement entitled Joint Statement on Framework for United States-Indonesia Agreement on Reciprocal Trade, as reported by whitehouse.gov, Wednesday, July 23.

With this agreement, Indonesia can accept vehicles made according to standard safety and emissions of motorized vehicles from the US. Indonesia is also asked to receive FDA certificates and marketing authorization for medical and pharmaceutical devices.

"Deleting certain labeling requirements," the deal explained.