Minister of Industry: TKDN is One of the Drivers of Employment

By : Aldi Firhand Alqudri | Thursday, August 03 2017 - 21:45 IWST

Minister of Industry Airlangga Hartarto

INDUSTRY.co.id - Jakarta - President Joko Widodo will issue a Presidential Regulation (Perpres) related to Domestic Content Level (TKDN) this week. In the Presidential Regulation, the President stressed that all products produced in the country must use local components in accordance with the provisions of each of these products.

"The Perpres of TKDN have been synchronized, so we just have to wait for when it will be issued," said the Minister of Industry after receiving the US-ASEAN Business Council Delegation at Kemenperin Office, Jakarta, Thursday (3/8/2017).

He added that the most important point that why TKDN not maximal because usually the purchase was impromptu. "In this TKDN we ask that the government's purchase plan, the central government, the ministry or the previous institutions have been in enaunce far the previous day, so that national companies can predict when to buy ships, passenger ships, ferries, so that planning can be designed from afar, "He explained.

According to him, most of these TKDN that we push for example in the PLN sector, electric city, 35 MW project, oil and gas, and infrastructure. "This is a project, if the project is usually enginering content, if enginering content can not be instant because the enginering system is not the same as the consumer-based industry," added the Minister of Industry.

Perpres TKDN is a regulation on monitoring and controlling the use of domestic products. Nevertheless, he insists there is no import restriction. However, this Presidential Regulation as an effort to optimize the use of domestic products so that the national project can be a means of absorption of national labor as well as savings of foreign exchange. Even import substitution industries can be revived

"Because the key of the economy and this project is for employment, TKDN is one of the ways to encourage employment," Airlangga added.

Airlangga further discloses, if using local content is not only incentives but also competitivenes. "The government program is expected to provide treecle down to economic actors, so inclusiveness should be pushed," he concluded.