Understanding Domestic Trade Barriers and How Contract Manufacturers Can Bring Crucial Solutions
Arisa Manufacturing
PT Arisamandiri Pratama is a world-class electronics contract manufacturer based in Indonesia. We manufacture for you.
Domestic trade barriers like Indonesia's Tingkat Komponen Dalam Negeri (TKDN) significantly impact global electronic brands seeking to penetrate the local market, as it mandates a certain percentage of a product's components to be locally sourced.
Therefore, how can contract manufacturing companies like Arisa bring a crucial solution to those challenges?
Adapting To Requirements
The existence of domestic trade barriers means that global electronic brands must adapt their supply chains and production processes to meet these requirements, which can be complex and costly.
Furthermore, non-compliance could lead to restrictions on market entry, reduced competitiveness, and potential financial penalties.
Leverage Local Production
Contract manufacturers present a viable solution to navigating these trade barriers. Global brands can leverage existing local production capabilities and expertise, ensuring compliance with TKDN without the need for extensive investments in new facilities.
These manufacturers already possess the necessary certifications and understand local regulations, providing a seamless integration of local components into the production process. This collaboration not only aids in meeting the TKDN requirements but also allows brands to maintain quality control and cost efficiency. Moreover, contract manufacturers can accelerate time-to-market, as they are equipped to scale production quickly in response to market demands.
Enhancing Competitive Edge
Amidst the intricate web of global trade dynamics and domestic barriers, our contract manufacturing service at Arisa will bring invaluable solutions for electronic brands seeking to effectively penetrate local markets like Indonesia while ensuring compliance and fostering sustainable growth.
This strategic alliance enables global electronic brands to focus on innovation and market strategy while ensuring compliance with domestic regulations, ultimately enhancing their competitive edge in the local market.
At Arisa, we are manufacturing for you.