He made the statement during a press conference at the Presidential Palace Complex in Jakarta on Friday, addressing public concerns about a possible influx of imported goods.
The minister underlined that the policy would only apply to specific products that will not adversely affect domestically made goods.
“As explained earlier by the coordinating minister for economic affairs, we do not intend to apply this TKDN facility to just any products. In other words, the policy will target only certain products that our country cannot produce yet,” Hadi elaborated.
The minister explained that the main goal of relaxing TKDN requirements is to meet domestic needs without undermining the competitiveness of national industries.
He reassured the public that the government would be cautious in determining which US products are exempt from the TKDN requirement.
“We cannot afford to carelessly allow products that we can make domestically to enter our market (without TKDN),” he remarked, affirming the government's commitment to balancing domestic needs and competitiveness.
Speaking in Jakarta on Thursday (July 24), Coordinating Minister for Economic Affairs Airlangga Hartarto clarified that the government would grant TKDN exemptions only for specific products related to information and communication technology, data centers, and medical equipment.
He noted that the policy would be implemented within the framework of Indonesia’s import regulations.
His remarks followed the Joint Statement on Framework for United States–Indonesia Agreement on Reciprocal Trade issued by the White House on July 22.
Key terms of the agreement include Indonesia’s commitment to easing trade barriers for US exports, including TKDN requirement -- often viewed as a non-tariff obstacle -- while the US agreed to reduce duties on Indonesian products entering its market, from 32 percent to 19 percent.
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Translator: Andi F, Tegar Nurfitra
Editor: Primayanti
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