JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita will provide a value of the domestic component level (TKDN) of 25 percent if foreign investors want to build factories and recruit local workers.
"So, basically once an investor invests and builds a factory, he automatically gets 25 percent. This is one of the steps of doing business points, not in the past," Agus said at a press conference in Jakarta, Thursday, September 11.
The policy is contained in the Regulation of the Minister of Industry (Permenperin) Number 35 of 2025 concerning Provisions and Procedures for TKDN Certification and Company Benefit Weight.
According to Agus, his party has involved stakeholders in conducting a trial of the rules that will take effect on December 12, 2025.
The change in rules is expected not only to simplify the registration process, but can increase the competitiveness of the national industry, absorb labor and ensure partiality to domestic product spending.
Agus added that entrepreneurs can get an additional value of TKDN of up to 20 percent if entrepreneurs want to involve the nation's children in conducting research, development and brainware.
The former Minister of Social Affairs said that the new regulation was the result of an evaluation of Permenperin Number 16 of 2024.
He said, Permenperin Number 16 of 2011 no longer answers the increasingly complex industrial needs and cannot provide convenience for industry players to participate in goods and services procurement projects.
The Golkar Party politician explained that the reshuffle of the TKDN regulation had 13 relaxation points.
In addition to providing a reward for the value of TKDN if you invest in the country, Agus frees entrepreneurs in choosing components to meet the BMP value of 15 percent.
"We focus on BMP incentives of up to 15 percent for industry players who encourage strategic programs from the Ministry of Industry, of course in turn it will help the growth of the manufacturing sector in the country," explained Agus.
During the reshuffle of the regulation, Agus also cut the time for issuance of TKDN certification through an independent verification agency for 10 working days, while small-scale entrepreneurs can be issued in three days.
The Minister of Industry also provides opportunities for small industries to make independent TKDN declarations and can last up to five years.
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Agus stated that his party would only carry out one supervision of TKDN in that period.
"So, we have indeed seen, yes, the importance of us taking sides for at least small industries," said Agus.
Furthermore, Agus emphasized that there is no obligation for entrepreneurs to have a TKDN certificate unless there is a regulation requiring a distribution permit. However, the ownership of the certificate can provide opportunities for entrepreneurs who want to register their products into e-catalog, so they can participate in the government's goods and services procurement program.
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