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RI Attracts Apple Investment Using TKDN Rules, This is the Analysis of UI Economist
Indonesia continues to try to attract Apple Investment from big technology companies like Apple. One of the strategies relied on is the implementation of the Domestic Component Level (TKDN) regulation. However, is this policy effective enough to boost investment and strengthen Indonesia's economic competitiveness? LPEM FEB UI economist Teuku Riefky provides an in-depth analysis on this matter. What is TKDN and Why is it Implemented? The Domestic Component Level (TKDN) is a policy that requires products or services sold in Indonesia to have a certain percentage of local components. This policy aims to: Encourage the use of domestic products. Reduce dependence on imports. Increase the competitiveness of local industries. However, this policy is not new. Developed countries such as the United States, United Kingdom, and Germany have also implemented similar policies. Unfortunately, developing countries such as India, Vietnam, and Malaysia have started to abandon this approach in favor of a more global market-oriented strategy. Why TKDN is Valued [...]