Government Reforms TKDN Policy to Boost Small Industry

RRI.CO.ID, Jakarta - The Ministry of Industry reformed the Domestic Component Level (TKDN) policy thru the issuance of Minister of Industry Regulation Number 35 of 2025 concerning the Provisions and Procedures for TKDN Certification and Company Benefit Weight (BMP). This regulation presents a certification system that is more transparent, accountable, easy, and quick to encourage the competitiveness of the national industry and the use of domestic products.

In addition to the certification scheme thru the Independent Verification Institution (LVI), the government now provides ease for small industries to obtain the TKDN certificate through a self-declare mechanism that can be accessed for free via the National Industrial Information System (SIINas).

Minister of Industry, Agus Gumiwang Kartasasmita, stated that this simplification is aimed at boosting the confidence of small industries so they can enter a wider market.

"The simplification of calculations and special treatment thru the self-declare mechanism is carried out to enhance the capabilities of small industries. However, there will still be oversight thru the examination of data compliance and accuracy before the certificate is issued," Agus said in a written statement on Monday, 2 March 2026.

The self-declared TKDN certificate is valid for five years without any cost, but business operators must first go thru the validation process in accordance with Perdirjen IKMA Number 261 of 2025. Validation is carried out thru SIINas with the requirements, among others, being registered as a small industry, having a maximum business capital of IDR 5 billion (excluding land and buildings), and submitting complete industrial data.

Director General of Small, Medium, and Miscellaneous Industries , Reni Yanita explained that applicants are required to upload a video of the production process and the business location with geographical markers. The validation team will review the documents and evidence within a maximum of 10 working days, either online or thru field visits.

"Until February 22, 2026, 121 companies have been validated as small industries and are eligible to submit a self-declared TKDN," Reni stated in a written statement on Monday, 2 March 2026.

The Ministry of Industry also established the details of the main components of goods thru the Director General of Small and Medium Industries Regulation Number 263 of 2025, as well as other sectoral regulations. The list will be evaluated at least once a year to ensure its relevance to industry needs.