Bisnis.com, JAKARTA — President Prabowo Subianto has given a controversial directive to relax local content requirements (TKDN) as a concession to the US in order to negotiate lower tariffs. Experts believe that while a flexible TKDN may ease business operations, it would be at the expense of local businesses.
TKDN, as regulated in Government Regulation No. 29/2018 on industrial empowerment, stipulates a minimum percentage of local content in goods and/or services as a requirement to conduct business in Indonesia in order to give local businesses a competitive edge, generate jobs, and reduce reliance on imports.
