Exceeding Target, Ministry Of Industry Distributes 9,841 TKDN Certifications

Minister of Industry Agus Gumiwang/PHOTO VIA BETWEEN HO Ministry of Industry

JAKARTA - The Ministry of Industry has issued 9,841 Domestic Component Level (TKDN) certifications. This achievement has exceeded the target of distributing certification for free. The certification also has a major impact on the productivity and competitiveness of the industry.

Minister of Industry Agus Gumiwang Kartasasmita said the government provided TKDN certification facilities for 371 products on December 10, 2021. This has also exceeded the target of 314 products. So that a total of TKDN certificates have been awarded for 9,841 products.

"This number will continue to grow until December 31, 2021," he said in a written statement, Sunday, December 19.

According to Agus, TKDN certification has a big impact on industrial productivity and competitiveness. In the upstream oil and gas industry, for example, thanks to the TKDN certification, the small and medium industry (IKM) sector that supports the oil and gas industry has generated a total contract value of more than Rp. 11 trillion throughout 2020-2021.

Meanwhile, the Secretary General of the Ministry of Industry, Dody Widodo, said that the number of domestic products that had a TKDN value above 40 percent reached 10,061 products, including the category of mandatory goods. In addition, domestic products that have a TKDN value of 25-40 percent reach 6,684 products, which have the potential to become mandatory goods if the BMP value reaches 40 percent.

"The Ministry of Industry continues to supervise various aspects to realize the program to increase the use of domestic products (P3DN) which continues to run according to the regulations, namely on the aspect of user agencies, on producers, as well as on the verification and certification process," he said.

In order to support the optimization of the P3DN program, continued Dody, the Ministry of Industry has also carried out cooperation in integrating TKDN data with several ministries and institutions. For example, cooperation in integrating TKDN data into the e-catalog of the Government Goods/Services Procurement Policy Institute (LKPP).

"In the product display in the LKPP e-catalog, it does not only display the TKDN value, but also the Company Benefit Weight (BMP) value. This is done to make it easier for domestic product users to see whether a product is included in the mandatory goods category or not," he explained.

As it is known that the use of domestic products has been proclaimed by the government since 2014 through Law no. 3 of 2014. Through this law, government agencies are required to use domestically produced goods/services in the procurement of goods/services financed by the APBN/APBD and give preference to domestically produced goods/services in these projects.

The benefit of a product that has been certified TKDN is that it has a very large opportunity to participate in tenders among government agencies and agencies, especially for those who have achieved a TKDN value of 40 percent and above.

Head of the P3DN Center of the Ministry of Industry, Nila Kumalasari, said that this opportunity can be seen from data on goods and capital expenditures from government institutions and agencies in 2021 to reach Rp. 609.3 trillion. "This can be used for the domestic industry," he said.