Indonesia is revising its Domestic Component Level (TKDN) calculation system to adopt an incentive-based model aimed at attracting more investment and supporting domestic industry growth. The Ministry of Industry is preparing to update the 2011 regulation (Permenperin No. 16/2011), shifting from a rigid compliance framework to one that rewards manufacturers for using local inputs. Under the proposed scheme, companies will receive TKDN incentives based on the composition of direct materials, labor, and factory infrastructure—such as a 15% incentive for building local factories and an additional 10% for employing local labor. These changes are designed to simplify the process and better accommodate industry needs, including considerations for exports and net-zero initiatives. Complementing this shift, Presidential Regulation No. 46 of 2025 mandates that government institutions and state-owned enterprises prioritize domestic products in procurement. Article 66 of the regulation outlines a tiered system: the highest priority is given to products with a minimum 25% TKDN and a combined TKDN and company benefit weight (BMP) of at least 40%. If such products are unavailable or insufficient, the government may procure items with at least 25% TKDN. This dual approach—regulatory reform and procurement prioritization—aims to strengthen Indonesia’s industrial base, reduce reliance on imports, and promote sustainable economic development.Source: https://ekonomi.bisnis.com/read/20250619/257/1886541/aturan-tkdn-terbaru-berbasis-insentif-segera-terbit-ini-bocorannya (ICE GIACARTA)

Fonte notizia: Bisnis.com, 19 June 2025