Strategy and identification of the level of domestic content (TKDN) of technological equipment in

Indonesia
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The determination and assessment of the level of domestic content, known as TKDN (Tingkat
Komponen Dalam Negeri) in Indonesia, for technological equipment involves a strategic and
systematic approach. TKDN is a measure of the percentage of locally sourced components and
materials used in the production of a particular product. Here's a strategy for identifying and
enhancing TKDN for technological equipment in Indonesia:

1. Define Objectives:

Clearly define the objectives of increasing TKDN for technological equipment. This may include
fostering domestic industries, reducing dependency on imports, and promoting economic
growth.

2. Regulatory Framework:

Develop and implement a comprehensive regulatory framework that outlines TKDN requirements
for different types of technological equipment. This framework may include incentives for
companies with higher TKDN.

3. Collaboration with Industry:

Engage with industry stakeholders, including manufacturers, suppliers, and research institutions.
Collaborate to identify feasible strategies for increasing TKDN without compromising quality and
competitiveness.

4. Supply Chain Mapping:

Conduct a thorough mapping of the supply chain for technological equipment. Identify key
components and materials that can be sourced locally. Work with suppliers to improve the
availability and quality of these inputs.

5. Capacity Building:

Invest in building the capacity of local industries to produce high-quality components. Provide
training programs, technology transfer, and financial support to enhance the capabilities of
domestic manufacturers.

6. Research and Development:

Support research and development activities to innovate and improve the quality of domestically
produced components. This can be achieved through partnerships between industry players and
research institutions.

7. Incentives and Disincentives:

Implement a system of incentives for companies achieving higher TKDN levels and disincentives
for those not meeting the required standards. This can include tax breaks, subsidies, or
preferential treatment in government procurement.

8. Monitoring and Evaluation:

Establish a robust monitoring and evaluation system to track the TKDN levels of different
technological equipment. Regularly assess the impact of policies and make necessary
adjustments to achieve the desired outcomes.

9. Public Awareness:

Raise public awareness about the importance of supporting domestically produced technological
equipment. Encourage consumers and businesses to prioritize products with higher TKDN.

10. International Collaboration:

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Collaborate with international partners and organizations to share best practices, technology, and knowledge.
This can also facilitate the integration of Indonesian products into global supply chains.

11. Continuous Improvement:

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Continuously review and improve the TKDN policy framework based on feedback from industry
stakeholders, changing market conditions, and technological advancements.

By implementing these strategies, Indonesia can work towards increasing the level of domestic
content in technological equipment, thereby supporting local industries and fostering economic
development.