RRI.CO.ID, Jakarta - Indonesia’s Ministry of Industry has reformed its domestic component level (TKDN) policy to make certification more transparent, accountable, and efficient, aiming to strengthen national industrial competitiveness and encourage the use of locally produced goods.

The reform is outlined in Minister of Industry Regulation No. 35/2025 on TKDN Certification and Corporate Benefit Weighting (BMP).

In addition to certification through Independent Verification Institutions (LVI), the government is providing small industries with easier access to TKDN certification through a free self-declare scheme available via the National Industrial Information System (SIINas).

Industry Minister Agus Gumiwang Kartasasmita said the simplified calculation and special treatment for small industries under the self-declare mechanism are designed to boost their confidence in competing in larger markets. “This achievement is supported by oversight measures, including checks on the accuracy of industrial data before TKDN applications are submitted,” he said in Jakarta on Monday, March 2, 2026, as quoted on the ministry's official website.

Agus emphasized that the self-declaration certification process shortens the time required and eliminates costs, with certificates valid for five years.

To prevent misuse, the ministry requires validation of small industry applicants in SIINas before they can submit TKDN requests. This is regulated under the Director General of Small, Medium, and Miscellaneous Industries (IKMA) Regulation No. 261/2025 on Technical Guidelines for Validating Small Industry Enterprises.

Director General of IKMA, Reni Yanita, explained that companies seeking validation must submit quarterly reports and upload video evidence of their production process and business location, complete with geographic tagging. “The validation team will review the data and videos within ten days of submission, and may also conduct inspections either on-site or online,” she said.

As of February 22, 2026, 121 companies had been validated as small industries, making them eligible to apply for TKDN self-declare certification.

Further details on the main components used in TKDN calculations are set out in IKMA Regulation No. 263/2025, which lists essential elements for goods in sectors such as food, furniture, building materials, chemicals, textiles, handicrafts, metals, machinery, electronics, and transport equipment.

The regulation specifies that TKDN calculations consist of 75 percent direct materials, 10 percent direct labor, and 15 percent indirect factory costs.

Reni noted that if a product is not listed in IKMA Regulation No. 263/2025, companies may refer to other directorate regulations covering agro, chemical, pharmaceutical, textile, metal, machinery, transport, and electronics industries. She added that the ministry will review and update the component lists at least once a year, or sooner if necessary. ***