XL Axiata hopes that the new TKDN easing policy will continue to support the progress of the telecommunications industry
PT XL Axiata Tbk (EXCL) stated that it still reviewing the government’s discourse regarding the possibility of easing Domestic Component Level (TKDN) regulations for imported products, especially those from the United States.
This issue arises amidst the spotlight on the need to continue to grow the local industrial ecosystem, in line with the encouragement of global investment in the technology and telecommunications sectors.
Commitment to Local Products
Reza Mirza, Head of XL Axiata’s Corporate Communications and Sustainability Group, stated that until now the company is still implementing the TKDN policy as set by the government.
“We remain committed to using local products in the design and operation of our facilities, in accordance with applicable regulations,” said Reza in an official statement to TongueTechno, Thursday (10/4).
He added that apart from utilizing technology from the United States, XL Axiata also remained opens up opportunities for alternative products, adapting to operational needs and business development.
Considering the Balance of the Industrial Ecosystem
According to Reza, the company hopes that any new policies related to TKDN will later consider the broad impact on the industrial ecosystem, incl protection against local perpetrators as well as openness to foreign investment.
Background to the Discourse on Relaxing TKDN
The discourse on easing TKDN rules for products from the US has begun to emerge in recent times. Several stakeholders in the industrial sector voiced their hope that the government could take care balance between opening the door to investment steadily provide protection to national industry.
For information, TKDN is a strategic policy to increase the participation of domestic products in the industrial supply chain and become one of the foundations of national technological independence.
