Indonesia Strengthens Domestic Industry with New TKDN Regulation

Enhanced Certification Process

The Indonesian Ministry of Industry, in collaboration with PT SUCOFINDO (Persero), has launched a new regulation through Minister of Industry Regulation No. 35/2025 to improve the TKDN (Domestic Component Level) certification process. This regulation is part of the government's efforts to promote the use of domestic products across various sectors including electricity, oil and gas, minerals, and commercial sectors.

Key Features of the New Regulation

1. Simplified TKDN Calculation: The new rules simplify the calculation of TKDN, making it more straightforward for businesses to comply.
2. Relaxation for Small Enterprises: Small businesses can now self-declare their TKDN if they meet certain criteria, with their certification being valid for 5 years.
3. Boost to Domestic Production: The regulation emphasizes that only products manufactured within Indonesia, using local labor and materials, will be considered for TKDN certification.

Government and Industry Response

Andi Lukman Hakim from SUCOFINDO emphasized the organization's commitment to supporting the new regulation as an independent verifier. "SUCOFINDO will continue to support the implementation of Minister of Industry Regulation No. 35/2025 in line with our role as an independent TKDN and BMP verifier," he stated.

Heru Kustanto from the Ministry of Industry highlighted that the new regulation is a clear indication of the government's commitment to empowering national industries. "The implementation of TKDN is a tangible proof of the empowerment of national industries, as mandated by Government Regulation No. 29/2018," he added.

Impact on Indonesian Industry

The new regulation is expected to have a positive impact on Indonesian industry by encouraging the use of local products and simplifying compliance for businesses. This move is likely to strengthen the competitiveness of domestic industries in both local and potentially international markets.