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The Minister of Industry launches reforms to the domestic parts procurement (TKDN) policy: cheaper, more convenient, faster, and more transparent.
2026-05-25
The Minister of Industry launches reforms to the domestic parts procurement (TKDN) policy: cheaper, more convenient, faster, and more transparent.
Industry Minister Agus Gumiwang Kartasasmita officially launched reforms to the Domestic Component Procurement (TKDN) policy and issued Ministerial Decree No. 35 of 2025. This new policy is seen as a significant milestone in strengthening the nation's industry, aligning with President Prabowo Subianto's "Asta Cita" vision, particularly in enhancing national autonomy, creating high-quality jobs, and continuously advancing downstream industrialization and industrialization.
"The TKDN reform is a response to the demands of the business community and a concrete manifestation of the government's support for domestic industry. We hope to ensure that Indonesian industry can not only survive but also achieve leapfrog development, bringing real benefits to the country and its people," the Minister of Industry said at a press conference in Jakarta on Thursday (September 11).
The Minister of Industry explained that the TKDN policy reform is based on four pillars:
Incentives include up to 20% additional TKDN value rewards for R&D activities, at least 25% rewards for companies investing domestically, and a simplified process for obtaining Business Performance Weight (BMP).
Simplified process – TKDN's calculation method is more convenient, the certificate validity period is extended to five years, and the material calculation method is simplified.
Convenience – Small businesses can declare a TKDN value exceeding 40% on their own, and the certificate is valid for five years. The TKDN value will also be directly indicated on the product label.
Speed – The certification process has been significantly shortened, with certification time for large enterprises reduced from 22 working days to 10 working days, and certification time for small enterprises reduced from 5 working days to 3 working days.
In addition, the government has strengthened oversight and imposed severe penalties for violations, including revoking certificates, designating auditing bodies, and recommending penalties for procurement officials.
According to records from the Ministry of Industry, as of September 11, 2025, 88,218 industrial products have received TKDN certification, involving more than 15,000 companies across various industries. This achievement has a significant impact on production sustainability, employment, tax revenue, and national economic growth.
Meanwhile, the Ministry of Industry also announced that it has issued TKDN certification for four iPhone 17 models applied for by PT Apple Indonesia. These certifications will be issued on September 11, 2025, after the products were deemed to comply with the provisions of Ministerial Regulation No. 29 of 2017.
Agus emphasized that the awarding of these certifications reflects Apple's commitment to national regulations and its determination to continue its strategic investments in Indonesia, including establishing the Apple Developer Academy and developing a digital talent ecosystem.
“Apple’s continued investment and the TKDN certification of the iPhone 17 demonstrate that Indonesia remains an important partner for global companies in building innovative industrial value chains,” the Minister of Industry said.
The Minister of Industry is optimistic that the TKDN reforms will enhance the competitiveness of Indonesian industries and encourage global investment. "Through the TKDN reforms, we hope to ensure that Indonesian industries not only survive but also achieve leapfrog development," he concluded.