Jakarta, INTI - Technological self-reliance has become a strategic issue in building the foundations of Indonesia’s digital economy, particularly in the telecommunications sector, which is seen as a critical arena for strengthening domestic capabilities.
The Domestic Component Level (TKDN) policy plays a central role in ensuring that the growth of the digital industry generates added value within the country, rather than positioning Indonesia merely as a market for imported products.
TKDN is designed to stimulate the development of local industries, enhance national manufacturing capacity, and expand employment opportunities in the technology sector.
In telecommunications, local content requirements apply to a wide range of equipment, including mobile phones, network devices, and supporting infrastructure for cellular and internet services.
Growth in Domestic Manufacturing and Empowerment of Local Talent
Several ministries are actively involved in setting standards, overseeing implementation, and coordinating industrial development to ensure alignment with national priorities.
One of the most tangible impacts of the TKDN policy has been the increase in domestic production activities for digital and telecommunications equipment.
Many companies have begun investing by establishing local manufacturing facilities or forming partnerships with national manufacturers.
These initiatives have delivered multiple benefits, including a stronger industrial structure, the creation of technical jobs, and the transfer of knowledge and expertise.
Rising local manufacturing activity has also reinforced national supply chain resilience, reducing reliance on imports that have historically been vulnerable to global supply chain disruptions.
Domestic production helps reduce the risk of delivery delays and cost spikes that are often triggered by external factors.
In addition, the TKDN policy contributes to improving the technological competencies of Indonesia’s human resources.
Global companies operating in Indonesia are required to engage local technical personnel and collaborate with educational institutions or national laboratories.
Such collaboration accelerates technology transfer and creates broader opportunities for the development of engineers, technicians, and researchers with expertise in modern telecommunications technologies.
Conclusion
The TKDN policy has emerged as a strategic instrument in strengthening Indonesia’s technological self-reliance, particularly in the telecommunications sector. By encouraging domestic manufacturing, enhancing supply chain resilience, and accelerating the development of local talent, TKDN helps ensure that digital economic growth delivers tangible value within the country. Moving forward, sustained policy coordination and industry collaboration will be key to positioning Indonesia as a competitive and resilient player in the global digital ecosystem.
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