Jakarta. An analyst recently warned about the dire consequences of easing local content policy just to get the US to revise its reciprocal tariffs.
President Prabowo Subianto recently floated a plan to make Indonesia’s local content policy “more realistic and flexible”. This rule mandates manufacturers to include locally-made parts in their products. The potentially relaxed rules — which many American companies have found to be taxing — will likely be one of the offers that Indonesia proposes when negotiating with the US to bring down its tariffs. The Donald Trump government had admitted that this local content requirement was among the reasons…