JAKARTA - The Ministry of Industry (Kemenperin) is currently drafting a new regulation regarding the Domestic Component Level (TKDN).
The regulation is considered in response to the tariff agreement between Indonesia and the United States (US).
Head of the Public Relations Bureau of the Ministry of Industry, Alexandra Arri Cahyani, said that the regulation would be issued in the form of a Minister of Industry Regulation (Permenperin).
"We will reform TKDN. Later, from the Minister (Agus Gumiwang Kartasasmita) itself, the TKDN reform will launch," said Alexandra at the Ministry of Industry Building, Jakarta, Monday, July 28.
Even though it is called reform, Alexandra assesses, the rules regarding TKDN are maintained. However, the formulation will adapt to the current conditions.
"Adjusting with the new rules and also modified accordingly," he said.
Alexandra added that the new rules are not only related to the results of negotiations with the US. However, he said, the regulation was also designed to apply in general to all countries.
"Overall, not just the US. There are also many other products. So, this is actually if we only stay fixated on one US, right, discrimination is called," said Alexandra.
The TKDN reform, according to Alexandra, was thoroughly designed. Even so, he said, the details of the policy could not be conveyed to the public.
"I can't tell you yet here, we are waiting for the Minister himself to launch it," 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.
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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.
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