Ministry Of Industry Says US Medical Devices Company Asks For TKDN Policy Not To Be Abolished

The Ministry of Industry (Kemenperin) said that one medical device company from the United States (US) requested that the Domestic Component Level (TKDN) be enforced.

Spokesperson for the Ministry of Industry Febri Hendri Antoni Arif assessed that the company had invested in the country. According to them, the TKDN policy actually provides protection.

"I just received a report, yes, there are American companies that have invested in Indonesia in the field of medical devices that request that the TKDN policy not be abolished and still enforced. Because the TKDN policy will protect their investment in Indonesia," said Febri in the release of IKI July 2025 at the Ministry of Industry Building, Jakarta, Thursday, July 31.

According to Febri, the TKDN rules ensure that their products can be purchased through government expenditures or State-Owned Enterprises (BUMN).

"And (TKDN) will ensure that their products will be purchased by government spending, (can) state-owned spending. So, US companies themselves view TKDN as necessary for their investment in Indonesia," he said.

On this occasion, Febri also mentioned the tariff agreement between Indonesia and America. One of the points of the agreement freed US products from the obligation to fulfill local content or referring to the TKDN rules.

"Regarding the request for US products to be released from TKDN, we convey that this must be in accordance with the regulations in force in Indonesia," he said.

Febri reminded that there are already binding rules regarding this matter.

"We know that there are regulations that regulate this TKDN. Especially, TKDN regulates government goods and services through Presidential Regulation 46 of 2026 in Article 66," 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 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.