April 24, 2025 | 12:07 am
TEMPO.CO, Jakarta - The Indonesian delegation, led by Coordinating Minister for Economic Affairs Airlangga Hartarto, is currently negotiating import tariffs with the United States. One of Indonesia's proposed concessions is to ease the policy on fulfilling the domestic component level (TKDN), which President Donald Trump reportedly considers an obstacle to his country's trade interests.
Responding to these negotiations, the Industry Ministry clarified that it has not yet implemented specific regulations on TKDN for information and communication technology (ICT) products. "There is no TKDN ICT regulation in place yet, so what would be deregulated?" stated Febri Hendri Antoni Arief, spokesperson for the Industry Ministry, in a written statement on Wednesday, April 23, 2025.
Febri explained that the government or the private sector's procurement of servers for data centers through imports does not require adherence to a TKDN policy. He asserted that the domestic industry is not yet capable of producing server products. He also assured that ICT imports are exempt from TKDN requirements.
He further stated that the Industry Ministry has never received complaints from four U.S. companies—Apple Inc., GE (General Electric), Oracle, and Microsoft—regarding TKDN for ICT. Similarly, according to Febri, neither the government nor State-Owned Enterprises (SOEs) have ever submitted complaints concerning TKDN policies related to server procurement.
Regarding Apple Inc., Febri noted that the company has never filed a complaint about TKDN for ICT. On the contrary, he said, Apple proposed an article on scheme 3 research and innovation in the Industry Ministerial Regulation No. 29 of 2017 to facilitate the sale of its smartphone products in Indonesia.
Apple also indicated that it had been unable to establish a smartphone production facility within three years in Indonesia. "They (Apple Inc.) requested scheme 3, focusing on innovation and research, to obtain a TKDN score that meets the required threshold," Febri explained.
In the 2025 National Trade Estimate (NTE) Report on Foreign Trade Barriers, published by the United States Trade Representative (USTR), the U.S. identifies trade barriers to Indonesia, with TKDN being one of them.
The report states that Indonesia imposes local content requirements on certain information and communications technologies as a prerequisite for selling those products in Indonesia. These requirements are alleged to limit the ability of U.S. companies to sell a range of telecommunications and electronics products in the Indonesian market. The United States continues to urge Indonesia to remove these barriers.
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