Ensuring a clean production environment is fundamental to respecting religious beliefs and consumers during the production of halal products. [The company's...]
Demonstrate corporate credibility through professional TKDN verification agencies.
2026-03-02
TKDN Verification AgencyThe Verification Agency is responsible for verifying and confirming the TKDN (Total Kilometers Dividend) achieved by the goods/service providers themselves. The verification results are issued by the Indonesian Ministry of Industry.TKDN CertificateOne of the important bases for this.
This agency is verifiable.Goods and servicesorCombination of goods and servicesThe domestic component of TKDN (Treaty Knowledge Qualification Certificate) is crucial. Besides meeting regulatory compliance requirements, TKDN verification also has significant implications for economic development, such as reducing reliance on imports and boosting employment. As domestic industries continue production, a more complete local supply chain will be formed, encouraging suppliers to establish factories and invest in Indonesia. Simultaneously, the government will set minimum TKDN thresholds for different industries to guide them in reducing import dependence across various production sectors.
Definition and Types of TKDN
TKDN (Domestic Content Level) refers to the content of a particular good or service (or a combination of both).The proportion of production factor value formed within IndonesiaIt is expressed as a percentage. Its calculation also takes into account factors such as transportation costs included in the price of goods and services.
In various government and institutional procurements of goods and services, TKDN (Total Kiln Density) is often a key preference indicator influencing bidding and evaluation, used to maximize the use of domestically produced products. For manufactured products, policies allow a certain percentage of imported components, while setting minimum TKDN values to promote domestic production capabilities and enhance product export competitiveness.
TKDN is generally divided into three categories:
1) Goods category TKDN
The calculation compares the "finished product price" with the "cost of imported components." The finished product price is typically based on the production cost structure, including:
Direct material costs
Direct labor costs
Factory overhead
2) Service-type TKDN
The comparison is calculated by subtracting the "overseas service price" from the "total service price". The total service price refers to the cost incurred in delivering the service, and is usually calculated up to the on-site location.
3) Goods and Services Combination TKDN
The calculation is based on the "total price" of goods and services, minus the "total price of foreign goods and services", and then compared.
The valid signatory of the TKDN certificate and/or BMP verification results is the relevant official designated by the Secretary General of the Ministry of Industry on behalf of the Minister of Industry.
What are the components of TKDN calculation?
When conducting its work, TKDN's verification agency will assess the technical and cost factors of the product/service, and combine them with...BMP (Bobot Manfaat Perusahaan, Firm Performance Weight)Calculated together. Common components include:
1) Composition of Goods (Item Components)
It covers raw material usage, design, and engineering. Engineering typically involves manufacturing, fabrication, assembly, and final completion, with an emphasis on the work originating domestically and being completed within Indonesia.
2) Service Components
This refers to the entire process from service provision to final delivery, with a focus on verifying whether resources and capabilities within Indonesia are used, for example:
Labor force (including experts)
Work tools (including software tools)
Supporting facilities and resources
Furthermore, the related service activities are conducted within Indonesia.
3) Composition of goods and services
It comprehensively evaluates the entire process from raw materials, design, manufacturing engineering, processing, assembly to completion, and also includes service elements such as expert services, software tools and support facilities.
TKDN Verification Process Overview
To ensure industry compliance with established regulations, the government will verify the TKDN values and BMP of goods/services. This work is carried out by [unclear - likely a company name or organization].TKDN Verification AgencyImplement directly.
The verification content typically covers:
Production stages and production processes
The machines and equipment used
Direct and indirect human labor
Manufacturing indirect costs (such as electricity, gas, telephone, etc.)
The overall cycle is relatively short; for some industries, the verification may only take about [time period missing].5 business days。
Businesses typically need:
Submit certification application
Data entry: Enter the data manually through the **National Industrial Information System SIINas (Sistem Informasi Industri Nasional)**
Awaiting institutional assessment and calculation results
To enhance convenience, the Ministry of Industry also allows companies to conduct self-assessments first and submit the results through SINas for verification and confirmation.
Why do SMEs also need to undergo TKDN verification?
TKDN verification is not only applicable to large manufacturing companies, but also to SMEs. Completing the verification helps enhance a company's credibility at the social and local government levels, and provides a greater advantage in procurement and market opportunities. Startups or early-stage companies can also submit applications to designated verification agencies as early as possible to establish compliance and brand endorsement.
Companies can apply for verification from government-designated agencies. Typically, they will need to prepare and submit relevant documents, such as the company's articles of association, company registration certificate, and production report for the most recent year (subject to the agency's specific requirements).