Cabut TKDN, Industri Lokal Terancam?

Summary

The script discusses Indonesia's TKDN (Domestic Component Level) policy, which mandates foreign brands to manufacture a portion of their products locally in order to sell in the country. While this policy has fostered local job creation and attracted global investments, it also raises concerns about higher prices and reduced global competitiveness. The script debates whether the policy should be loosened or tightened in response to international pressure, particularly from the US. The speaker emphasizes the need for a balanced approach that protects local industries without stifling foreign investment.

Takeaways

• 😀 TKDN (Local Content Requirement) forces foreign companies to include Indonesian components in their products to protect local industries and create jobs.
• 😀 The policy has successfully encouraged global companies like Samsung, Xiaomi, Oppo, Vivo, and even Apple to open factories or assembly lines in Indonesia, benefiting the local economy.
• 😀 TKDN has contributed to job creation and economic growth by bringing in foreign investments and opening up local job opportunities in various sectors, including electronics, automotive, and infrastructure.
• 😀 While the policy has its benefits, it has made products more expensive in Indonesia due to higher local production costs compared to imports from countries with more efficient production capabilities.
• 😀 The policy also limits the competitiveness of local industries, especially in terms of price, as local production costs tend to be higher than imported goods.
• 😀 Before the TKDN policy, Indonesia's smartphone imports were at an all-time high, contributing to a negative trade balance. The introduction of TKDN helped reduce imports and prompted local production.
• 😀 The policy's effectiveness in creating jobs and protecting local industries is balanced by the fact that it makes Indonesia a less attractive market for some global companies due to higher costs and production requirements.
• 😀 International pressure, particularly from the US under Donald Trump, has led to discussions on relaxing or removing TKDN to allow foreign companies to access the Indonesian market more easily.
• 😀 If the policy is relaxed or removed completely, imported goods could flood the market, leading to job losses, potential business closures, and negative impacts on the local economy.
• 😀 A potential solution is to fine-tune the TKDN policy, offering incentives for foreign companies to invest in Indonesia while maintaining protections for local industries, similar to strategies employed by countries like India and China.

Q & A

What is TKDN and why was it implemented in Indonesia?

TKDN (Tingkat Komponen Dalam Negeri) is a regulation requiring foreign brands to ensure that a certain percentage of their products sold in Indonesia is locally sourced. It was implemented to protect local industries, create jobs, and boost the Indonesian economy by encouraging foreign companies to invest in local manufacturing.

What are the positive impacts of the TKDN regulation on Indonesia?

The positive impacts of TKDN include the creation of local jobs, foreign investment in manufacturing facilities, and a reduction in Indonesia's trade deficit. Brands like Samsung, Xiaomi, Oppo, and even Apple have opened factories or established production facilities in Indonesia, contributing to the local economy.

How does TKDN affect the pricing of products in Indonesia?

TKDN can increase the price of products in Indonesia since local production is not as efficient as manufacturing in countries like China. This is because local industries may not have the same scale or technology, leading to higher costs of goods.

What happened to the import of smartphones in Indonesia before and after TKDN?

Before TKDN, smartphone imports in Indonesia were very high, reaching 62 million units per year, which was one of the highest categories of imports. After the regulation was enforced, foreign brands like Samsung and Xiaomi responded by setting up local production facilities to meet the required local content percentage.

Why is there pressure to loosen or remove TKDN, and what international factors are involved?

There is pressure to loosen or remove TKDN due to international concerns, particularly from the U.S. The Trump administration's tariffs on Indonesian products have led to complaints that products like the iPhone 16 cannot be sold in Indonesia because they do not meet the local content requirements of TKDN.

What are the potential risks of loosening or removing TKDN?

The potential risks include flooding the market with cheaper imported goods, which could harm local industries, lead to significant job losses, and reduce Indonesia's ability to compete globally. It could also result in local companies closing or relocating, and lower demand for locally produced components, which would harm small and medium-sized businesses (UMKM).

How would removing TKDN impact local industries and jobs?

Removing TKDN could lead to local industries being unable to compete with cheaper imported goods, forcing many to shut down or relocate. This would cause job losses in various sectors like electronics, automotive, and textiles, leading to economic instability and lower consumer purchasing power.

What are the potential benefits for foreign companies if TKDN is removed?

Foreign companies would benefit from easier access to the Indonesian market without having to set up local manufacturing facilities. This would reduce their operational costs and allow them to import and sell products directly, potentially increasing their profits in the Indonesian market.

What is the suggested solution for balancing the impacts of TKDN?

The suggested solution is not to fully loosen or remove TKDN, but to relax the 'TKDN investment' rule for companies that have already made significant investments in Indonesia, like Apple. This approach allows foreign companies to continue their operations while protecting local industries and employment. It emphasizes the need for gradual adjustments rather than rash decisions.

How do other countries, like India and China, handle similar challenges with local production and imports?

India applies a dual approach, using high import tariffs while also providing incentives for local production, such as production-linked incentives (PLI). China, on the other hand, has a strong local manufacturing base and provides export incentives, making their products harder to compete with globally. Indonesia can learn from these models to balance local protection and foreign investment.