In Order To Improve Small Industrial Competitiveness, The Ministry Of Industry Makes It Easier To Certify TKDN

Director General of Small, Medium and Multifarious Industries (IKMA) of the Ministry of Industry Reni Yanita. (Photo: Doc. Ministry of Industry)

In order to protect domestic products in order to increase competitiveness and control the national market, the Ministry of Industry (Kemenperin) has provided a Domestic Content Level (TKDN) certificate for industries in Indonesia.

Facilitation of TKDN certificates guarantees for products made by domestic industries to be purchased by the government through the procurement of goods and services.

This includes those that can be utilized by small industries (IK), in accordance with Minister of Industry Regulation Number 46 of 2022 concerning Provisions and Procedures for Calculating the Value of TKDN for Small Industries.

"The issuance of TKDN certificates for small industries is getting easier and more free of charge," said Director General of Small, Medium and Multifarious Industries (IKMA) of the Ministry of Industry Reni Yanita in a statement in Jakarta, Thursday, January 12.

Reni said the convenience provided was in the form of simplifying the TKDN value calculation.

"So, small industries will calculate the TKDN value themselves, which includes aspects of direct materials or materials, direct labor, indirect factory costs (factory overhead), and costs for development," he said.

He said the TKDN IK regulation was aimed at making small industries targeted for government, BUMN and BUMD spending. This year, the Ministry of Industry targets as many as two million IKM products to be included in the e-catalog of the Government Goods/Services Procurement Policy Institute (LKPP).

"The P3DN policy in the procurement of goods and services by the central and local governments, BUMD, and BUMN are expected to expand the domestic product market, as well as provide a large multiplier effect to maintain national economic stability this year, and reduce dependence on imported products," said Reni.

According to Reni, facilitating TKDN IK certificates is not only useful for boosting the national economy, but also provides benefits for small industry players to improve their class and their business is more developed.

"According to the President's direction regarding the use of domestic products and MSME products, the procurement of government goods and services is required to use products with TKDN at least 25 percent when there are products with an accumulation of TKDN and BMP values of at least 40 percent," he added.

For your information, the calculation of the TKDN-IK value is carried out independently by small industry players through the National Industrial Information System (SIINAs).

Therefore, small industry players who apply for the issuance of TKDN-IK certificates are required to have a SIINAs account first.

Furthermore, small industries can attach necessary documents related to the value of domestic content to be verified by the Ministry of Industry.

The verification process only takes five working days and the certificate can be printed independently by the applicant industry. All processes are carried out through SIINAs online.

In addition, the Ministry of Industry continues to hold socialization and technical guidance activities to apply for the issuance of TKDN certificates in various regions.

Earlier this year, socialization began in Banda Aceh City on January 10. This technical guidance was attended offline by 200 small industrial business actors in Banda Aceh City and Aceh Besar District who already have a business identification number with an industrial business KBLI, as well as around 500 online business actors.