Jakarta –
Minister of Industry (Menperin) Agus Gumiwang Kartasasmita officially issued Permenperin Number 35 of 2025 concerning Provisions and Procedures for Certification of Domestic Component Level (TKDN) and the weight of company benefits (BMP) today.
Agus said, the birth of this regulation was a contribution to the Ministry of Industry in the deregulation effort in the economic sector. According to Agus, Permenperin Number 35/2025 will also support the Asta Cita program owned by President Prabowo Subianto.
“TKDN will also certainly support the Asta Cita President Prabowo program, where the second Asta Cita is to strengthen the defense of state security, as well as encouraging the independence of the nation in the fields of energy, water, creative economy, green economy, there is also a third Asta Cita, creating employment. Not only employment, but it must be quality,” Agus said at a press conference at the Ministry of Industry, Thursday (11/9/2025).
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Agus explained, Permenperin 35/2025 is an update to Permenperin Number 16 of 2011 which is 14 years old. According to him, old regulations are inadequate to answer industry needs that are increasingly faster, complex and competitive.
Agus said that the new regulations will make it easier for industry players to participate in the procurement project of goods and services from the central government, regional governments, BUMN and BUMD that require TKDN rules.
Through TKDN reform, it is hoped that investment flows to the country will become increasingly heavy. Agus then emphasized that this TKDN reform was not due to pressure from any party.
“The national deregulation is to reduce international trade barriers, increase investment flows, and create a more conducive business climate for domestic industry players. Once again I emphasize that this reform is lair or compiled not because of pressure from any party, both domestic and foreign,” said Agus.
New TKDN Rules
TKDN reform emphasizes 13 change points grouped in 4 main pillars. First is setting TKDN incentive questions. This reform also presents additional incentives, such as a minimum TKDN value of 25% for companies that invest and absorb local labor.
“The minimum TKDN value of 25% is given to companies that invest in the country, have product facilities on their own, and use the majority of Indonesian factories. So in essence, Once Investors invest and build factories, he automatically has gotten 25%,” said Agus.
Then there is an additional value of up to 20% for those who conduct research and development. In the previous rule, there is no TKDN value incentive for investors who invest in Indonesia, including entrepreneurs who conduct research and development.
The second pillar is the simplification of TKDN calculations that are no longer based on total costs, except for industrial services. Then, the validity period of the TKDN and BMP certificates is extended to 5 years.
The third pillar is convenience, especially for small and medium industry players (IKM). IKM perpetrators are now receiving convenience in submitting TKDN certification, including with a self -declare scheme that is valid for five years.
With the Self Declare method, IKM can get a TKDN certificate faster at a very mild cost, it can even reach the TKDN value of more than 40% without administrative complexity as before. Later, entrepreneurs can also display the value of TKDN in their products, but are still optional.
“But this is optional, it will not be required by us to include. It is optional. But roughly there should be pride for industry players who produce their goods to display the value of TKDN when their products enter the markets,” Agus explained.
The fourth pillar is speed. Before the TKDN reform, the calculation must go through a fairly long stage. Now, said Agus, the stages were cut so that the TKDN certificate could be published faster.
“The certification time is 10 working days through LVI which was previously 22 working days, and 3 working days for small industries through self declare which was 5 days,” Agus added.
Agus added, this rule only applies to companies interested in registering their products in e-catalogs for the procurement of goods and services of the central government, local governments, BUMN and BUMD that require TKDN rules.
The company is indeed required to meet TKDN and BMP so that their products can pass the requirements to participate in the procurement of government goods/services. In addition, this rule was made to ensure that state spending really encourages the progress of local industries and provides concrete benefits to the national economy.
(ily/hns)
