Get To Know The TKDN That Made Jokowi Fire Pertamina Officials

JAKARTA - Indonesia continues to import pipes. Even though these components can be produced domestically. This also upset President Joko Widodo (Jokowi). In fact, his frustration led to the dismissal of a high-ranking official at a state-owned company, namely PT Pertamina (Persero).

The Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan revealed this. He said, Jokowi's dismissal was due to the failure of high-ranking Pertamina officials to increase the Domestic Component Level (TKDN).

For the record, the government is indeed pushing for an increase in TKDN to suppress imports and maintain the trade balance

"Yesterday, a high-ranking Pertamina official was fired by the president directly," he said at the 2021 BPPT Technology Innovation Ecosystem Strengthening National Working Meeting, Tuesday, March 9.

Unfortunately, Luhut did not specify the name of the dismissed Pertamina official. His party also did not disclose the exact time of dismissal and who was the replacement for the dismissed high-ranking Pertamina official.

"So you just check who was replaced," he said.

Then, what is TKDN? Why is this so important?

For information, TKDN is the number of components contained in the country in goods, services and a combination of goods and services. Meanwhile, the rules regarding TKDN are contained in Government Regulation (PP) Number 29 of 2018 concerning Industrial Empowerment.

In Article 54 of the regulation, it is explained that the increased use of domestic products aims to empower domestic industries and strengthen industrial structures.

The users of domestic products consist of state agencies, ministries, non-ministerial government agencies, other government agencies, regional work units in the procurement of goods or services, state-owned enterprises (BUMN), other state-owned legal entities, state-owned enterprises. regional (BUMD), and private business entities.

Particularly for the procurement of goods or services, users of domestic products are required to use domestic products that have a total TKDN value and a company benefit weight value of at least 40 percent.

Meanwhile, domestic products that must be used are at least 25 percent. In addition, users of domestic products can make tenders or direct purchases electronically in the process of procuring goods or services.

Later, the TKDN value and the company's benefit weight value must also refer to the inventory list of domestically produced goods or services issued by the Minister.

Meanwhile, the amount of TKDN and the value of the weight of company benefits for domestic products submitted by producers in the procurement of domestic products must also match the amount of value written in the inventory list of domestically produced goods or services.

Article 62 Paragraph 1 also states that officials who procure goods or services are obliged to state the requirements for domestic products in the preparation of documents for procurement of goods or services.

Officials for the procurement of goods or services can ask for clarification on the truth of the TKDN value listed in the inventory list of domestically produced goods or services. This clarification can be obtained from the Ministry of Industry.

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Not only that, TKDN is also regulated in the Minister of Energy and Mineral Resources Regulation Number 15 of 2013 concerning the Use of Domestic Products in Upstream Oil and Gas Business Activities.

Article 1 of the regulation explains that TKDN is the amount of domestic components in goods, services and combination of goods and services expressed in percentage.

Then, in article 2, it is stated that the purpose of TKDN is to support and develop domestic products so that they are able to support upstream oil and gas business activities.

TKDN is also expected to provide added value to the economy, absorb labor and be competitive nationally, regionally and internationally.

In addition, TKDN also aims to support and develop domestic product innovation / technology, increase the use of domestic products in upstream oil and gas business activities while still considering the principles of effectiveness and efficiency.

"Realizing an orderly implementation of increasing the use of Domestic Products in the Upstream Oil and Gas Business Activities," reads article 2.

Article 4 of the regulation mandates every contractor, domestic producer, and provider of goods and / or services who procure goods and / or services in the upstream oil and gas business activities.

The Financial and Development Supervisory Agency (BPKP) conducted an audit at PT Pertamina (Persero) from May to June 2020. In its findings, the Increased Use of Domestic Production (P3DN) or the Domestic Component Level (TKDN) was in the spotlight.

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This is because one of his findings concerns the use of TKDN as the company's Key Performance Indicators (KPI). This means that over the past few years TKDN has not become a KPI for the performance of directors.

Therefore, at the end of 2020, the BPKP proposed and recommended to Pertamina, the Ministry of Industry, and the Ministry of State-Owned Enterprises (BUMN) that TKDN would become KPI for the directors of Pertamina and other state-owned companies.

Later, it was also discovered that the Company Work Plan and Budget (RKAP) was another problem for Pertamina.

From the BPKP findings, over the past few years, the company has not included TKDN as an important point in the discussion of the company's RKAP. In fact, the BPKP noted that TKDN was an important point in the formulation of the RKAP. This is because it measures the level of use of local products.

The BPKP findings have also been submitted to President Jokowi. Regarding TKDN which is an important point in Pertamina's RKAP, it has been followed up in the formulation of the 2021 RKAP. This was discussed by the company at the end of last year.

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