TKDN Relaxation Policy Important Step in Response to Trump Tariff Rules

TKDN Relaxation Policy Important Step in Response to Trump Tariff Rules
Jakarta – The Indonesian government has taken strategic steps in responding to the import tariff increase policy imposed by the President of the United States (US) Donald Trump. One of the key approaches taken is the relaxation policy of the Domestic Component Level (TKDN), especially in the information and communication technology (ICT) sector. This policy is considered a form of balance between international trade diplomacy and strengthening the national economy.
Member of Commission XI of the Indonesian House of Representatives, Marwan Cik Asan, stated that this government step reflects the intelligence of economic diplomacy that is not only reactive, but also anticipatory.
“The government’s move to respond to President Trump’s policy of increasing import tariffs is a smart approach. It reflects the balance between trade diplomacy and strengthening the domestic economy,” he said.
Marwan added that the government has taken various efforts to maintain the competitiveness and sustainability of the national economy. Among them, by deregulating trade rules to facilitate exports and imports, relaxing TKDN in the ICT sector, and exploring increasing imports and investment from the US, especially in the energy sector such as oil and gas.
“This approach shows that we are not only surviving, but also opening up space to grow amidst global pressure,” he stressed.
In line with this, Coordinating Minister for Economic Affairs, Airlangga Hartarto, emphasized that the TKDN relaxation policy is part of Indonesia’s economic diplomacy strategy in facing the US’s reciprocal import duty policy. He said that the government is preparing comprehensive negotiation materials, in which TKDN relaxation is one of the important instruments.
“Relaxation of TKDN, especially for information and communication technology products, is one of the important points in our negotiations with the US. This policy is not only economic, but also diplomatic, because through this route we can build a more equal and mutually beneficial trade relationship,” explained Airlangga.
According to him, by opening up space for TKDN relaxation, Indonesia is showing flexibility in its industrial policy, without ignoring the need to maintain added value domestically.
“We remain committed to national industrial development, but with a strategy that is more adaptive to global dynamics,” he added.
Meanwhile, Foreign Minister Sugiono emphasized that the TKDN relaxation step was not just a short-term reaction to external pressure, but rather part of a larger strategy to maintain national economic resilience in various scenarios.
“This policy was formulated with great consideration. We are not only looking at today, but also five to ten years into the future. The world is changing, and we must be able to adapt without losing our national economic identity,” said Sugiono.
He also emphasized that economic diplomacy will continue to be an important pillar in Indonesia’s foreign policy. By strengthening healthy and fair trade relations, Indonesia can maximize the potential of the global market while strengthening its economic structure at home.
The relaxation of TKDN itself is expected to increase the attractiveness of foreign investment, especially from the US, which has so far been hampered by various local content requirements. By providing certain relaxations, Indonesia opens up opportunities for technology transfer and development of domestic industrial capacity through broader collaboration.
This policy also signals that Indonesia is ready to be a reliable and open strategic partner in the global trade arena. More than just a response to US protectionist policies, this is a statement that Indonesia is ready to adapt agilely, without abandoning its commitment to sustainable economic development.
Amidst the fast-moving dynamics of global geopolitics and economy, the TKDN relaxation policy shows that the Indonesian government is not standing still. On the contrary, this is a real manifestation of adaptive, intelligent, and visionary economic leadership.