New Rules For TKDN Terbit, Manage Easier Product Certification

JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita reshuffled the Domestic Component Level (TKDN) rule through the issuance of Minister of Industry Regulation (Permenperin) Number 35 of 2025.

The new regulation regulates the provisions and procedures for TKDN certification and the weight of the company's benefits. The regulation is set today, Thursday, September 11, 2025.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said the regulation was a contribution from the Ministry of Industry in its deregulation efforts in the economic sector. According to Agus, Permenperin number 35/2025 will also support the Astacita program launched by President Prabowo Subianto.

"This TKDN will also certainly support President Prabowo's Astacita program, in which the second Astacita is to strengthen national security defenses and encourage the nation's independence in the fields of energy, water, creative economy, the green economy as well as the third Astacita creates jobs. Not only employment, but must be of high quality," Agus said at a press conference at the Ministry of Industry's office, Jakarta, Thursday, September 11.

The regulation also replaced the previous inadequate rules and answered that industrial needs were getting faster, more complex and competitive.

Agus explained that Permenperin 35/2025 is an update to Permenperin Number 16 of 2011 which is 14 years old. According to him, the old regulations are no longer adequate to answer the needs of the industry, getting faster, more complex and competitive.

He considered that the new regulation would make it easier for industry players to participate in the project to procure goods and services from the central, regional, BUMN and BUMD governments that needed TKDN regulations.

Through TKDN reform, it is hoped that the flow of investment to Indonesia will become even more intense. Then, Agus emphasized that the TKDN reform was not due to pressure from any party.

"The goal is to reduce barriers to international trade, increase the flow of investment and create a more conducive business climate for domestic industry players. Once again I emphasize, this reform was born or prepared not because of pressure from any party, both domestically and abroad," he said.

TKDN reform focuses on 13 points of change that are grouped into 4 main pillars. First, regulate the issue of TKDN incentives. The reform also provides additional incentives, such as the TKDN value of at least 25 percent for companies to invest and absorb local workers.

"The value of TKDN is at least 25 percent given to companies investing in the country, owning their own product facilities and using the majority of Indonesian factory workers. So basically, once investors invest and build factories, they automatically get 25 percent," said Agus.

The second pillar is the simplification of TKDN calculations no longer based on total costs, except for industrial services. Then, the validity period of TKDN and BMP certificates was extended to five years.

The third pillar is convenience, especially for small and medium industry players (IKM). IKM players are now getting convenience in submitting TKDN certification, including with a self-declare scheme that is valid for five years.

"With the self-declare method, IKM can more quickly obtain TKDN certificates at very low costs, it can even reach TKDN values of more than 40 percent without administrative complexities as before. Later, entrepreneurs can also display TKDN values in their products, but they are still optional," he said.

The fourth pillar is speed. Before TKDN reform, the calculation had to go through a long stage. Now, continued Agus, the stages were cut so that the TKDN certificate could be published more quickly.

"The certification time is 10 working days through LVI, the previous 22 working days and 3 working days for small industries through self-declare which was previously 5 days," he said.