TKDN Formulation Never Ends, Now the Ministry of Trade Tightens Cellphone Import Permits

TKDN Regulation (Domestic Content Level) which depends on the device smartphone 4G in Indonesia is still being discussed. Both regarding the regulation itself or its impact. One of the latest ones is regarding the revision made by the Ministry of Trade (Kemendag) regarding the provisions on the import of cellular phones (cell phones).

This rule revision mentioned in some media will tighten device import permission smartphone 4G and reinforce the obligation to use domestic raw materials, more specifically related to TKDN. This revision is also said to have the aim of boosting the value of domestic investment.

Quoted from news Kontan, the Beleid which was ratified by the Minister of Trade Thomas Lembong on May 30, 2016 and took effect on June 1, contains a number of regulations, including the requirements to obtain a determination as a registered importer (IT) of mobile phones, handheld computers, and tablet computers being classified into two. The first is for devices on the 3G network and the network below it, the second is for devices on the 4G LTE network.

TKDN regulations have indeed been debated since they were planned a year ago. Ministry of Communication and Informatics (Kemenkominfo) and also the Ministry of Industry which has direct contact with this policy, have jointly formulated TKDN regulations with the enthusiasm to provide a 'stage' for local creations or to attract investment into the country.

Basically regulations and rules are made to help or limit an action. In the event that TKDN rules are made to limit products smartphone 4G to enter Indonesia to help the domestic industry grow, good nor hardware, at least for domestic use. To increase the 'value' of the Indonesian nation if quoting the statement of Minister Rudiantara year then.

Actually, the TKDN scheme has impact on two manufacturers smartphone which eventually "retreated" to market some of its products in Indonesia. With this revision of import rules, it is also predicted that some products will be canceled or at least slow to enter Indonesia.

So far, Indonesia is well known as a promising market. With usage penetration smartphone which is quite high, and also seeing the stretching of competition from telecommunication operators who are busy selling 4G service quality, smartphone 4G in the next few years can be predicted to be an item that will be sought after.

Hopefully this TKDN initiative can be the right way to attract investment, not even a boomerang that makes many producers run away. Besides having to be clarified as soon as possible, TKDN should also be accompanied by government support to encourage industry and hardware homeland to be better or at least equal to the quality of the industry and hardware international.