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View all search resultsIndonesian manufacturers are increasingly cautious in their outlook as business confidence has fallen to a record low amid concerns over United States import tariffs. The waning sentiment risks holding back investment.
The Industry Ministry plans to revise local content requirements (TKDN) following the recent trade agreement reached with the United States, in which Indonesia has agreed to remove TKDN requirements for US firms.
Industry observers and experts say that, while the decision to extend the LCGC program to 2031 could help in the short term, the government needs to come up with a road map to secure the country’s electrification push for the long term.
Five commodities prioritized for deregulation include forestry products, subsidized fertilizers, raw materials for plastic, other fuel types and food trays used in President Prabowo Subianto’s flagship free nutritious meals program.
The company poured Rp 500 billion (US$30.7 million) in investment for a facility that will produce various models of Mercedes-Benz Axor trucks and specially designed Mercedes-Benz bus chassis tailored for the Indonesian market.
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