Exemption Of TKDN For US ICT Products, Government Affirms It Is Limited

Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso (Photo: Antara)

JAKARTA - The government has granted exemption from the obligation of the Domestic Component Level (TKDN) for Information and Communication Technology (ICT) products from the United States.

According to Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso, this policy is part of a bilateral commitment that has been agreed upon and strengthened through the binding executive order from the US side.

"In yesterday's commitment, that's our commitment, (is it official?). If that's the binding executive order. So once again it's limited and we control it right. It doesn't mean that the entry is also very free," he told the media crew, Friday, August 9.

Nevertheless, he explained that the exemption of TKDN is limited and remains under strict supervision from the relevant technical ministries, such as the Ministry of Industry (Kemenperin) and the Ministry of Communication and Digital Affairs (Komdigi).

"All of the permits are still there," he said.

Susiwijono said that the entire licensing process was still under the supervision of the relevant ministries, and that did not mean that ICT products from the US could enter freely without control.

"That's just a certain limitation treatment specifically. Later the implementation will be with the US, there will definitely be a regulatory change," he said.

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto explained that the policy for exemption from the Domestic Component Level (TKDN) was only applied to certain products from the United States (US).

He ensured that the easing of TKDN was not applied to all commodities from the US. Check out the list of US products free of TKDN RI below.

Airlangga revealed that the exemption from TKDN regulations is only limited to telecommunications products, information and communication technology, data centers, and medical or medical equipment or health equipment. In addition, these products from the US still have to meet the import requirements applied.

"Telecommunications, information and communication technology (ICT) products, data centers, medical devices, and still comply with import regulations carried out by the technical ministry," Airlangga said in a press conference held at his office, Jakarta, Thursday, July 24, 2025.

He also talked about a trade agreement related to recognition of certification from the US Food and Drug Administration (FDA). He explained that Indonesia had received an FDA certificate during the Covid-19 pandemic several years ago.

"We can receive vaccines issued by other countries, Western countries, such as from Astrazeneca to Pfizer based on their respective FDAs, which go directly with WHO protocols (World Health Organization)," explained Airlangga.