Minister Of Industry Agus Gumiwang Invites Industry Players To Increase TKDN

Illustration. (Photo: Doc. Ministry of Industry)

JAKARTA - The Ministry of Industry invites industry players to increase the Domestic Component Level (TKDN) and succeed in the program to increase the use of domestic products (P3DN) and import substitution.

"Through this local content policy, it is hoped that the domestic industry will be more competitive in the global arena, and be able to continue to support the national economy. We also continue to encourage import substitution by the end of 2022 to reach 35 percent," said Industry Minister Agus Gumiwang Kartasasmita in a written statement. , Monday January 3rd.

TKDN certification provides benefits to the industry. Most importantly, more of the products will be absorbed through government procurement of goods and services.

Domestic products must be used by users of domestic products in the procurement of goods and services whose budget is sourced from the State Revenue and Expenditure Budget (APBN), Regional Revenue and Expenditure Budget (APBD), loans, grants, cooperation patterns with the government, and exploit the resources controlled by the state," said the Minister of Industry.

In the procurement of goods and services, users of domestic products are required to use domestic products if there are domestic products that have a total TKDN value and a Company Benefit Weight (BMP) value of at least 40 percent.

Domestic products that must be used as intended must have a TKDN value of at least 25 percent.

In 2022, the Ministry of Industry will facilitate domestic industrial companies to obtain TKDN certificates in 2022 as many as 1,250 product certificates.

The Ministry of Industry has allocated funding through the National Priority (PN) budget of Rp. 20 billion to facilitate the TKDN certification.

"Products that will be facilitated include industrial products of medical devices, agricultural tools and machinery, pharmaceuticals, machinery, electronics, and telematics," explained the Minister of Industry.

In addition to the industrial sector, the Ministry of Industry will facilitate TKDN certificates for the metal, electricity, chemical, fertilizer, automotive and component industries, ceramics, cement, textiles, and small and medium-sized industrial products (IKM).

The TKDN certificate is proof of the legality of the TKDN value of a product. Therefore, the government continues to encourage optimizing the obligation to use domestic products. One of them is by socializing regulations that contain the obligation to use domestic products, for example Government Regulation Number 29 of 2018 concerning Industrial Empowerment.

Industrial companies can take advantage of the free TKDN certification facility from the Ministry of Industry by fulfilling the requirements, including having an industrial sector Business License or Business Identification Number (NIB), having a company establishment deed, having a Taxpayer Identification Number (NPWP), and having registered in the Information System. National Industry (SIINas).

"All industrial companies that have valid permits, produce, invest, and are located in Indonesia can take advantage of the free TKDN certification facility from the government," said the Minister of Industry.

The sectors that are entitled to use this facility are industries that have a minimum TKDN value of 25% and each company is facilitated with a maximum of 8 (eight) product certificates in a year.

To administer the TKDN certificate, the industry can apply for a self-assessment of the TKDN value in its products. The results of the independent calculation are then verified by the Independent Verification Institutions appointed by the Ministry of Industry, namely PT Surveyor Indonesia and PT Sucofindo.

After going through the verification process, then the TKDN certificate is confirmed by the Ministry of Industry. With this multi-layered verification process/stages, it is hoped that the output of the value of the domestic component level can be in accordance with the capabilities of the industry in the field.

However, the Minister of Industry reminded industry players who want to carry out TKDN certification not to be influenced by parties who want to take personal advantage of the TKDN certification policy.

"I received a report that there are TKDN brokers, these brokers contacted the industry and promised to complete the process of getting a high TKDN score," he said.

This is because this is contrary to the government's efforts to increase the independence of the industrial sector.

"We also ask for support from all stakeholders to be able to encourage industry players in the regions so that they carry out TKDN certification for the products they produce," said the Minister of Industry.