Ministry of Industry Opens Option for Relaxation of TKDN for HKT and Medical Devices

The government is stimulating a policy to relax the Domestic Component Level (Tingkat Komponen Dalam Negeri - “TKDN”) in response to the United States (US) cutting its reciprocal tariff on Indonesia to 19%. The revision of the regulations will be adjusted to the minimum TKDN value for Handphones, Handheld Computers, and Tablets (Handphone, Komputer Genggam, dan Tablet - “HKT”) as well as Medical Devices (Alat Kesehatan - “Alkes”).

“It’s still in progress. Just wait; it will be adjusted according to market needs,” said Doddy Rahadi, Senior Advisor for Business Climate and Investment at the Ministry of Industry (“Ministry”), Doddy Rahadi to Hukumonline.

Ministry is also considering that the exemption from the TKDN policy will be adjusted to the applicable regulations, one of which is Regulation of the President No. 46 of 2025 on the Second Amendment to Regulation of the President No. 16 of 2018 on Government Procurement of Goods/Services (collectively referred to as “Regulation 16/2018”).

This step was taken to maintain the competitiveness of domestic business actors and foreign companies so that they can continue to obtain certainty from government spending or State-Owned Enterprises (“BUMN”).