Airlangga Said Indonesia Will Not Completely Remove TKDN For US Products

Coordinating Minister for the Economy Airlangga Hartarto (Photo: dock. VOI)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto opened his voice regarding the joint statement (joint statement) of the President of the United States (US) Donald Trump.

In particular, related to the elimination of non-tariff barriers for the export of US industrial products to Indonesia, namely local content or the Domestic Component Level (TKDN) policy.

Airlangga emphasized that Indonesia will not completely abolish the provisions of TKDN for all products from the United States that enter the domestic market.

He explained that the policy of removing TKDN would only be implemented selectively, depending on the related sector.

"Not (all deleted), that's the sector (which was deleted). There is a sector," he told the media crew, Wednesday, July 23.

Previously in the official release of US President Donald Trump, Indonesia would release products from the United States and goods produced from the requirements for fulfilling local content or the Domestic Component Level.

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 factory investment 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.

There were other exceptions to the agreement. The government was also asked to exclude cosmetic products, medical devices and other manufactured goods from the US.

RI and AS also agreed to resolve the intellectual property rights issues that have long been identified in the USTR report.

"Indonesia will seek to overcome US export barriers, including through the abolition of import restrictions or licensing requirements on US remanufacturing goods or their parts," the statement said.

The agreement also asks Indonesia to remove inspection requirements or pre-delivery verification of imports of US goods. In addition, RI is also asked to adopt and implement healthy regulatory practices.