Japanese Automotive Investors Highlight Licensing and TKDN in
Japanese automotive companies operating in Indonesia have expressed concerns regarding licensing hurdles, SME financing, and local content requirements. The Indonesian government has committed to addressing these investment barriers to improve the business climate.
Why it matters
As Indonesia seeks to bolster its automotive manufacturing sector, addressing the needs of major foreign investors like Toyota is critical for economic growth and supply chain stability.
Japanese automotive industry players have raised concerns regarding licensing, financing for SMEs, and local content requirements (TKDN) in Indonesia. The government has pledged to address these investment barriers.
Vehicle production line activity at an automotive factory. Japanese automotive industry players highlighted several investment obstacles in Indonesia, ranging from licensing and access to financing for supporting industries to TKDN requirements. (Photo: Illustration) Jakarta, Aktualita.co — National automotive industry players, alongside their Japanese business partners, have highlighted several obstacles that they believe continue to affect the investment climate in Indonesia. Issues regarding licensing, difficult access to financing for small and medium-sized enterprises (SMEs) in the automotive supply chain, and Domestic Component Level (TKDN) certification were the three main issues presented to the government.
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