Relaxation of TKDN for the US Has No Impact on Investment Climate

According to Todotua, the relaxation of several of these provisions has not had a significant impact on the investment climate within the country.

“This is simply part of a broader strategy; some of the requirements have been relaxed. However, there are calculations regarding the trade benefits we derive from them, so it doesn’t have a major impact,” Todotua said at his office in Jakarta on Tuesday, 24 February 2026.

He believes that this policy is part of a trade strategy, not a fundamental change in the direction of national investment policy.

Indonesia, he said, remains attractive to investors, including companies from the US.

Todotua also denied that there was an agreement requiring Indonesia to follow the political steps or boycott policies of other countries.

“Communication and cooperation are certainly open to us, but independence and self-reliance remain,” he emphasised.

Previously, the government confirmed that the TKDN (Domestic Content Requirement) provisions would remain in effect, particularly in government procurement or spending projects. However, for products circulating in the commercial market, these provisions are said not to be applied generally.

Therefore, the relaxation carried out in the context of a trade agreement is considered not to change the overall structure of business competition within the country.