TEMPO.CO, Jakarta - Indonesian Coordinating Minister for the Economy Airlangga Hartarto outlined several government options to negotiate with the United States. One of the options under consideration is a relaxation of the rules for the domestic component level (TKDN).
As is known, the Indonesian government decided to take a diplomatic route in response to U.S. President Donald Trump's imposition of a 32 percent import tariff on Indonesian products. One negotiating point is to offer to relax non-tariff barriers or non-tariff measures.
The sector requested by the U.S. to relax the TKDN policy is Information and Communication Technology (ICT). ''So there are considerations related to the sectors they export to Indonesia, including ICT. We are currently reviewing this and will respond,'' said Airlangga during a press conference at his office on Monday, April 7, 2025.
In an economic dialogue with businessmen and investors at Menara Mandiri, Sudirman, Jakarta, on Tuesday, April 8, 2025, Airlangga again outlined plans to relax regulations or deregulate Non-Tariff Measures. ''This includes what America has requested, ICT for TKDN, especially for American investments in Batam,'' he said.
Airlangga stated that the U.S. also provides flexibility for the Free Trade Zone. ''So this also becomes material for our negotiations. Because they will invest in data centers, including Oracle, Microsoft, and related trade,'' he added.
Earlier, Deputy Minister of Industry Faisol Riza stated that the relaxation discourse is still under review. ''Everything is still being reviewed before it is officially sent to the U.S. It cannot be announced yet,'' he said at the Coordinating Ministry for the Economy office on Monday, April 7, 2025.
According to Faisol, the relaxation of TKDN is only being considered for products from the U.S. The Coordinating Minister for the Economy will offer this negotiating point to the U.S. Airlangga, Faisol added, will depart for the U.S. no later than April 17, 2025.
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