Observers propose solutions to face US tariffs other than reducing TKDN

Observers propose solutions to face US tariffs other than reducing TKDN





Jakarta - Telecommunications observer and Executive Director of the ICT Institute Heru Sutadi proposed an alternative solution besides reducing the domestic component level in electronic products, in facing the reciprocal tariff policy of United States (US) President Donald Trump.

"An alternative solution other than reducing TKDN is to increase TKDN by focusing on innovation, not just assembly. For example, developing local chips or high-value components, as Vietnam has successfully done," Heru said in a written statement to ANTARA, Thursday.

Heru said that the government's plan to reduce TKDN in electronic products has advantages and disadvantages.

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