Jakarta (ANTARA) - President Prabowo Subianto has instructed his ministers to make the domestic component level (TKDN) regulations more flexible in order to maintain the global competitiveness of Indonesia’s industries.
He made the statement during a national economic forum in Jakarta on Tuesday, responding to economists' recommendations that the government take steps to safeguard Indonesia’s position in global industrialization.
“We have to be realistic. If TKDN is forced, we will lose competitiveness. Let TKDN be flexible,” Prabowo said.
He noted that current TKDN rules may be too rigid, leading some investors to bypass Indonesia in favor of other countries.
Prabowo said the mechanism could be revised, possibly by offering incentives.
“Perhaps it can be replaced with incentives. Please, my assistants, my ministers, let’s be realistic. Just make TKDN realistic,” he added.
He also emphasized that domestic product development could still progress through other avenues, especially through investment in human capital, education, and science and technology.
In addition to calling for more flexible TKDN rules, Prabowo expressed support for economists’ suggestions to adopt “neck-to-neck, eye-to-eye, and point-to-point” principles to promote industrialization in Indonesia.
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These principles aim to make the country more attractive to investors by offering conditions that rival those of competing nations.
“I’m interested in the neck-to-neck or eye-to-eye proposals — that’s extraordinary,” he remarked.
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Prabowo reiterated his administration’s commitment to wise deregulation, aiming to eliminate outdated rules that hinder industrial growth.
“This deregulation — I am committed to cutting down on complicated licensing systems. There are just too many. This has become our mission, and we must carry it out,” he said.
