Minister Of Industry Agus Affirms TKDN Reform Is Not Due To Pressure From Other Countries

JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasmita stated that the reform of the Domestic Component Level (TKDN) carried out by his party was not a policy that was rushed or caused by pressure from other countries.

"We want to emphasize that TKDN reform is not due to latah, is not reactive, and is not due to pressure. We have started this since February 2025, long before the recent dynamics developed," Agus said as quoted by ANTARA, Sunday, May 11.

Agus said that TKDN reform is part of the government's long-term efforts to strengthen national industries through increasing the use of domestic products.

This policy is also in line with the President's directive to deepen the industrial structure and increase national competitiveness.

"The Ministry of Industry has carried out a comprehensive evaluation of the implementation of TKDN so far. This reform aims to make policies more adaptive, transparent, and provide optimal benefits for domestic industry players," he said.

Agus said that the government will continue to involve various stakeholders in the implementation of this reform so that its implementation runs effectively and on target.

In addition, he said, the Presidential Regulation (Perpres) Number 46 of 2025 concerning the Government's Procurement of Goods and Services (PBJ) which had just been issued reaffirmed the importance of the TKDN policy for the domestic industry.

This regulation is a legal basis that strengthens the new direction of the TKDN policy, including improving verification mechanisms, incentives for industry players, and strengthening supervision to encourage commitments to use domestic products in various sectors.

With this step, his party is optimistic that it can accelerate the independence of the national industry and strengthen the domestic manufacturing ecosystem.

The Ministry of Industry and industrial companies also appreciate the emergence of four new sub-alats in Article 66 of Presidential Decree Number 46 of 2025, which regulates the priority order of government spending and BUMN/BUMD.

In this new regulation, the government prioritizes and is obliged to buy TKDN or PDN products compared to imported products.

The priority order of government spending on TKDN and PDN products is in accordance with article 66 of Presidential Decree No. 46 of 2025 is as follows:

1. If there are products that add up the TKDN and BMP (Company Benefits Bobot) score of more than 40 percent, then what the government can buy through PBJ is products with TKDN above 25 percent.

2. If there are no products that add TKDN and BMP scores above 40 percent, but there are products that have TKDN scores above 25 percent, then products that have TKDN scores above 25 percent can be purchased by the government through the Government PBJ.

3. If there are no products that have TKDN above 25 percent, the government can buy products that are lower than 25 percent.

4. If there are no products that are certified by TKDN, the government can buy PDN registered in the National Industrial Information System (SIINAS).