TKDN Regulation for 4G Devices Successfully Suppressed Import Value Up

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The Government of Indonesia has implemented TKDN regulation (Domestic Content Level) of 30% since 2015 ago for devices using 4G LTE network. This regulation does make some new devices too late to slide into the Indonesian market, but the regulation of TKDN has succeeded in reducing Indonesia’s import figures drastically.
As reported by CNN Indonesia, Tuesday (29/08/2017), according to Ismail Ahmadi as Director General of Resources and Equipment of Post and Information Technology (SDPPI), the import value of 4G LTE devices for 2016 and then successfully suppressed from USD 3.5 billion to USD 1.6 billion or converted into Rupiah to IDR2.4 trillion.
It should be noted if the decline in import figures is limited to smartphone devices, tablets, and computers. But in the future not only mobile devices will be affected by TKDN regulations, because the government has put in place strategies to implement TKDN regulations on IoT devices. For those of you who are not familiar, IoT (Internet of Things) device is everything electronic objects connected to the internet, such as smart refrigerator, lights, up to a smart rice cooker.

The emphasis on import figures is certainly good news, forcing international companies to build factories or R & D in Indonesia in order to meet the TKDN of 30% if you still want to do business in the Indonesian market. It is expected that the decline in import numbers for 4G devices will increase for this year and the next year.

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