There Are Many Changes In TKDN Reform, The Ministry Of Industry Gives This Leak

JAKARTA - The Ministry of Industry (Kemenperin) has provided a leak about plans to reform the Domestic Component Level (TKDN) rules. TKDN reform was carried out in response to the tariff agreement between Indonesia and the United States (US).

The Director General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) of the Ministry of Industry, Setia Darta, said that there would be many changes in the TKDN regulations.

However, he said, TKDN still contains rules regarding labor to raw materials.

"(What has changed) a lot. But, the important thing is that it cannot be separated from raw materials, labor and overhead. It cannot be separated from that, because it must exist," he said when met at the Ministry of Industry office, Jakarta, Wednesday, July 30.

However, the man who is familiarly called Tata was reluctant to specify the technical changes to TKDN. He was also reluctant to answer when the new rules would be released to the public. According to Tata, TKDN will not be specific aimed at certain countries.

Tata assessed that the TKDN reform would make its implementation cheaper, easier and faster.

"The important thing is reform making TKDN easy, cheap and fast," explained Tata.

"Later (it will be launched) in the near future. The one who made it, right, Mr. Kapus (International Product Use Increase (P3DN) of the Ministry of Industry," 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.

Dengan kesepakatan tersebut, Indonesia dapat menerima kendaraan yang dibuat sesuai standar keselamatan dan emisi kendaraan bermotor dari AS.

Indonesia juga diminta menerima sertifikat FDA dan otorisasi pemasaran untuk perangkat medis dan farmasi.

"Menghapus persyaratan pelabelan tertentu," jelas kesepakatan itu.

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With this agreement, Indonesia can accept vehicles made according to safety standards and emissions of motorized vehicles from the US.

Indonesia was also asked to receive FDA certificates and marketing authorization for medical and pharmaceutical devices.

"Deleting certain labeling requirements," the deal explained.