technology

IDCI Offers Long-term Solution Regarding Relaxation Of TKDN Rules

The Indonesian Digital & Cyber ??Institute (IDCI) offers a long-term solution related to the government's plan to relax the Domestic Component Level (TKDN) rules in the information and communication technology (ICT) sector towards the United States. 

As a long-term solution, the government is considered necessary to start developing the TKDN 2.0 approach, namely a local value calculation model that not only focuses on physical components, but also takes into account intellectual property control, contributions to local research, and its impact on the national innovation ecosystem. 

"In this framework, relaxation incentives can be used as an economic diplomacy tool that also strengthens the foundation of independence, not just opening up the market for foreign technology," said IDCI Executive Director Yayang Ruzaldy in a press release, Wednesday. 

It is known that the government is preparing a Non-Tariff Measure (NTMs) negotiation package through the relaxation of the Domestic Component Level (TKDN) rules in the ICT sector towards the United States. 

IDCI considers this step to be a quick and strategic response to the 32 percent reciprocal tariff policy imposed by the United States on Indonesia. 

The policy is an important turning point in bilateral economic relations, as well as a test of the resilience and independence of Indonesia's digital economy amid geopolitical tensions and global trade wars. 

Yayang said that the government's approach of using diplomacy and avoiding retaliation actually shows pragmatic and pro-investment leadership. 

"By choosing diplomacy and avoiding retaliation, the government is trying to maintain a conducive investment climate and open up opportunities for technological cooperation with large US companies, such as Microsoft, Oracle, Apple, and General Electric," he said. 

Tag: IDCI Information And Communication Technology TKDN