MPR Urges Indonesia To Face Trump Tariffs: Don't Relax TKDN!

Kredit Foto: Antara/Arnas Padda

MPR Urges Indonesia To Face Trump Tariffs: Don't Relax TKDN!

Tuesday, 08 Apr 2025

Amid the increasingly heated global trade tensions, the United States' reciprocal tariff policy under President Donald Trump is actually considered a strategic opportunity for Indonesia. This was expressed by the Deputy Chairman of the MPR RI, Eddy Soeparno, who said that the policy could be an important momentum to inject new energy into the national industry.

Instead of being afraid, Eddy invited the government to remain firm in maintaining the Domestic Component Level (TKDN) policy which has so far been the driving force of the local industry.

"TKDN is not protectionism. This is a strategy to build a domestic industry so that we are not flooded with foreign products," he said in an official statement, Sunday (6/4/2025).

Eddy responded to the concerns of some entrepreneurs regarding the possibility of relaxing TKDN regulations in order to reduce trade pressure from Uncle Sam's country. He said that such a step would only open up a gap for other partner countries to demand similar treatment.

"Once we give relaxation, everyone will line up to ask for the same thing," said Eddy.

Eddy is confident that Indonesia's diplomacy is strong enough to explain the position of TKDN in international forums. He also fully supports the direction of President Prabowo Subianto's policy which emphasizes strengthening local competitiveness, diversifying export markets, and expanding multilateral economic cooperation—including with ASEAN, BRICS, and OECD.

"President Prabowo's strategy is right. We cannot just rely on old markets. We need to open new doors and expand export networks, while improving the quality of domestic products," said Eddy.

Furthermore, he also continued to emphasize the importance of maintaining focus on the downstream and industrialization agenda, especially for superior commodities such as minerals.

"Don't just export raw materials. We must be able to produce final products, batteries, solar panels, copper wire, even aluminum furniture. That's what we call moving up a class," he said.

In the future, Eddy added, Indonesia's economic growth must rely on industrial expansion and investment based on added value, not just on raw material exports.

"The US retaliatory tariffs should not be a threat, but a slap in the face that makes us aware: it's time to rise and be independent through our own industry," he concluded.