The Ministry Of Industry Intensifies The Socialization Of Small Industry TKDN To Advance Local Products

Director General of IKMA of the Ministry of Industry, Reni Yanita. Photo: Doc. Ministry of Industry

The Ministry of Industry (Kemenperin) continues to actively socialize Regulation of the Minister of Industry Number 46 of 2022 concerning Provisions and Procedures for Calculating Domestic Component Values (TKDN) for Small Industries.

This effort is also in order to encourage increased TKDN certification for small industries (TKDN IK), so that small industry players can participate in the procurement of government goods and services which will lead to optimizing the use of local products.

Some time ago, the Directorate General of Small, Medium and Multifarious Industries (IKMA) held a Technical Socialization and Guidance activity for TKDN Certification Registration for Small Industries in Bekasi, West Java.

The hybrid activity was attended by as many as 300 IKM players who came from Bekasi City and its surroundings offline. The participants who participated online included representatives from the Provincial/Regency/City Industry Office in Java, Bali and Kalimantan, as well as IKM assisted actors in the area.

"To further improve the performance of the industrial sector, it must be supported by efforts to strengthen the quality of domestic products, as well as prepare security instruments in the form of regulations so that domestic products can control the market and meet domestic needs," said IKMA Director General of the Ministry of Industry Reni Yanita in Jakarta, Tuesday, February 28.

According to Reni, the form of government alignment with small industries, one of which is to make it easier to obtain a TKDN certificate in accordance with the mandate of Permenperin 46/2022. "The convenience in obtaining the TKDN-IK certificate provided is in the form of simplifying the calculation of the TKDN value," he said.

Currently, small industry players can calculate the TKDN value themselves, which includes aspects of direct materials or materials, direct labor, indirect factory fees (factory overhead), and costs for development.

"The application for registration to obtain the TKDN-IK certificate is carried out through the National Industrial Information System (SIINAs). Therefore, small industries that wish to apply for the issuance of TKDN-IK certificates are required to have a SIINAS account," said Reni.

The issuance of this TKDN IK certificate is free of charge. "There is no certification fee charged to small industries, even the certification is made simple and fast, so it only takes five working days," said Reni. This TKDN IK certificate is valid for a period of three years, and can be extended once with a period of two years.

The P3DN policy in the procurement of goods and services by the central and local governments as well as BUMD and BUMN, said Reni, is expected to expand the domestic product market as well as provide a large multiplier effect to maintain national economic stability.

"The P3DN policy is also expected to arouse a sense of nationalism for all levels of society to begin to love and be proud to use domestic products," he explained.

The government's alignment with domestic products, mainly produced by MSMEs and SMEs, can be seen from several policies that have been issued such as Presidential Instruction Number 2 of 2022 concerning the Acceleration of Increasing Use of Domestic Products and Products of Micro Enterprises, Small Businesses, and Cooperatives in order to the success of the Proudly Made Indonesia National Movement in the Implementation of Government Goods/Services Procurement.

The regulation confirms the need to plan, allocate, and realize 40 percent of the budget value of goods/services to use micro-business products, small businesses, and cooperatives from domestic production results. Presidential Instruction 2/2022 also mandates to accelerate the screening of domestic products and MSME products (including IKM) and Cooperatives in national, sectoral and local e-Catalogs.

"The government is also trying to encourage an increase in the realization of government spending on goods/services to use micro-enterprises, small businesses, and cooperatives from domestically produced products through direct LKPP Procurement Expenditures or known as Procurement Defense," said Reni.

Reni also said that Government Regulation Number 29 of 2018 concerning Industrial Empowerment mandates the government to be obliged to use domestic products, if there are domestic products that have an additional TKDN value and a minimum Company Benefit Weight of 40 percent.

"Of course, domestic products that have a TKDN value of 40 percent will become heroes of this country. With this effort, we hope that in the future there will be more domestic products that can meet the needs of government procurement and business entities," he concluded.