TKDN of 4G and 5G Devices Up 35%, Minister of Communication and Information: Grow Domestic Industry
The government has set the fulfillment of the Domestic Component Level (TKDN) to increase to 35% for 4G and 5G Subscriber Station Devices that will be used in Indonesia. The Minister of Communication and Information, Johnny G. Plate, stated that it was regulated in the Minister of Communication and Informatics Regulation Number 13 of 2021 to grow the domestic telecommunications equipment industry.
“This regulation regulates the obligation to fulfill the Domestic Component Level or TKDN of 35% for 4G and 5G Subscriber Station Equipment that will be circulated and used in Indonesia. With this provision, the TKDN value of 4G and 5G Subscriber Station Devices will increase from the previous 30 percent,” he explained in a press conference on the Minister of Communication and Informatics Regulation regarding 5G TKDN, from the Media Center Room of the Ministry of Communications and Informatics, Jakarta, Thursday (21/10/2021).
Minister of Communication and Informatics Regulation Number 13 of 2021 regulates technical standards for telecommunications equipment and mobile cellular telecommunications equipment based on Long Term Evolution (LTE) technology standards. The Minister of Communication and Information, issued on October 12, 2021, also regulates the International Mobile Telecommunication 2020 technology standard which includes technical requirements for Subscriber Station devices.
“And for Base Station devices that use LTE-based technology or 4G technology, as well as technology based on International Mobile Telecommunication 2020 technology standards or 5G technology, which works on spectrum bands of 850 Mhz, 900 MHz, 1800 MHz, 2.1 GHz, and 2, 3 GHz,” explained the Minister of Communication and Information.
Minister Johnny emphasized that Permenkominfo Number 13 of 2021 is the government’s commitment to increase domestic components up to 35% TKDN.
“For the deployment of 4G and 5G in Indonesia, it also ensures that domestic industries are involved and take part which is getting higher from time to time,” he said.
Through the new TKDN policy, the Minister of Communication and Informatics hopes that this will encourage the growth of the domestic telecommunications equipment industry.
“Thus, the domestic industry can be more involved in the development and construction of telecommunication infrastructure based on 4G and 5G technology. As mandated by the President, so that Indonesia can become a smart player country in network development, both 4G and 5G networks,” he explained.
In addition, the TKDN provisions are also to ensure concrete encouragement and support for domestic production of 4G and 5G telecommunication components and equipment.
“In determining the value of this TKDN component, the Ministry of Communication and Informatics has received input from the Ministry of Industry, and is the result of consultations carried out with telecommunications equipment vendors,” said Minister Johnny.
The Minister of Communication and Information explained that the obligation to fulfill the TKDN of 35% is one of the requirements to obtain a certificate of equipment from the Ministry of Communications and Information Technology, before the equipment is circulated or sold in Indonesia.
“The TKDN provision of 35 percent will be enforced 6 months from the stipulation of this ministerial regulation, and for that reason telecommunications equipment vendors can immediately begin to adjust,” he said.
In the press conference which took place virtually, Minister Johnny was accompanied by the Director General of Postal and Information Technology Resources at the Ministry of Communications and Informatics, Ismail.
Public Relations Bureau of the Ministry of Communication and Informatics