Spokesperson For The Ministry Of Industry Ensures That The Reform Of The TKDN Rules Is Not Due To The US Reciprocal Tariff Agreement

Spokesperson for the Ministry of Industry (Kemenperin) Febri Hendri Antoni Arif. (Photo: ANTARA)

Spokesperson for the Ministry of Industry (Kemenperin) Febri Hendri Antoni Arif ensured that changes or reforms to the Domestic Component Level (TKDN) were not made because there was an agreement on import rates with the United States (US).

Febri said that the TKDN regulation reform had been carried out long before US President Donald Trump set a trade agreement with the Republic of Indonesia.

"Regarding the TKDN reform, it will be announced by the Minister of Industry, Mr. Agus Gumiwang Kartasasmita," Febri said in the release of IKI July 2025 at the Ministry of Industry Building, Jakarta, Thursday, July 31.

"The TKDN reform was carried out long before President Trump announced the announcement of the reciprocal rate. This means that TKDN reform is not driven by President Trump's trade tariff agreement," he continued.

According to him, TKDN reform was prepared to consider the needs of the national industry.

The goal is so that domestic industries can more access government spending.

In addition, he said, in order to protect existing manufacturing investments and attract new investments.

"We see that many new medical device industries have emerged, as a result of the implementation of the TKDN policy," said Febri.

"Not only is there a new industry, but also absorbs more workers, because there is a new industry. So, it is technical reform and then the impact of the implementation of the TKDN policy," he concluded.

Previously, 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 rules.

He said, TKDN still contains rules regarding labor to raw 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.