Minister Of Industry Agus Reveals Reasons For Revision Of TKDN Rules

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita revealed the reason for the issuance of Minister of Industry Regulation (Permenperin) Number 35 of 2025 concerning Procedures for Issuing Domestic Component Level Certificates (TKDN).

According to him, the regulation replaces the old regulations that are no longer in accordance with the needs of the industrial world lately.

"When there are new dynamics and needs in the field, the government must have the courage to re-regulate," Agus said in an official statement quoted on Thursday, October 16.

In the new regulation, entrepreneurs can get an additional value of TKDN of up to 20 percent if they want to involve the nation's children in conducting research, development and brainware.

Agus assessed that the new regulation is an important milestone in strengthening the national industrial ecosystem through cheaper, easier, faster and incentive-based policies.

He explained that the government had discussed the revision of the regulations related to TKDN since March 2025.

Agus also claimed that the issuance of the new regulation had nothing to do with the policy of import tariffs for the United States (US) to Indonesia.

"If we recall, Trump's tariff has only been applied on April 1, 2025. Meanwhile, we have started discussing the revision a month earlier. So, it's not because of Trump's tariff," he said.

The former Minister of Social Affairs revealed that the TKDN policy applies to all types of industrial products purchased by the government through the procurement of goods and services (PBJ), whether high-tech or not.

However, Agus said, if the domestic industry is able to produce these products, the government is obliged to buy the product without having to import it from other countries.

Sedangkan pemberlakuan kebijakan TKDN terhadap produk industri yang dibeli oleh rumah tangga dan swasta bergantung kepada kebijakan kementerian atau lembaga lain pembina sektor tersebut.

"Jadi, pemberlakuan kebijakan TKDN pada produk high-tech tersebut tidak bergantung pada apakah industri high-tech atau tidak," ucap Agus.

Meanwhile, the implementation of the TKDN policy for industrial products purchased by households and the private sector depends on the policy of ministries or other sector coaches.

"So, the implementation of the TKDN policy on high-tech products does not depend on whether the industry is high-tech or not," said Agus.