Domestic Component Levels for Telecommunication Gadgets

The Minister of Industry (“Minister”) has issued Regulation No. 65/M-IND/PER/7/2016 of 2016 on the Provisions and Procedures Used to Calculate Domestic Component Levels for Cellular Phones, Handheld Devices and Tablet Computers (“Regulation”).
 
The Regulation aims to bolster the competitiveness of any domestic industries which are involved in the production of cellular phones, handheld devices and tablet computers (collectively referred to as “Telecommunications Gadgets”) by requiring that any such devices contain certain levels of domestic components (Tingkat Komponen Dalam Negeri – “TKDN”), as installed during the production of any such Telecommunications Gadgets.
 
In order to implement this objective, the Regulation sets out guidelines for the calculation and assessment of any compliance with this TKDN requirement, and covers:[1]