The Ministry of Industry continues to actively promote Minister of Industry Regulation No. 46 of 2022 on Provisions and Procedures for Calculating the Domestic Component Level (TKDN) for Small Industries. This also aims to increase TKDN certification for small industries (TKDN-IK), so small industry players can take part in government procurement of goods and services, ultimately optimizing the use of local products.
Recently, the Directorate General of Small, Medium and Miscellaneous Industries (IKMA) held Outreach and Technical Guidance on TKDN Certification
Registration for Small Industries in Bekasi, West Java. The hybrid event was attended in person by 300 SMIs from Bekasi City and surrounding areas. Online participants included representatives of Provincial/Regency/City Industry Offices in Java, Bali and Kalimantan, as well as SMIs fostered in those regions.
“To further improve industrial performance, it must be supported by efforts to strengthen domestic product quality and to develop safeguards in the form of regulations so domestic products can dominate the market and meet domestic needs,” said the Director General of IKMA at Kemenperin, Reni Yanita, in Jakarta on Tuesday (28/2).
According to Reni, the government's support for small industries includes making it easier to obtain TKDN certificates, as mandated by Permenperin 46/2022. “The ease in obtaining TKDN-IK certificates takes the form of simplified TKDN calculation,” she said.
Small industry players can now calculate their own TKDN value, covering direct materials, direct labor, indirect factory costs (factory overhead) and development costs. Applications for TKDN-IK certificates are submitted through the National Industrial Information System (SIINas). “Small industries wishing to apply for a TKDN-IK certificate must therefore have a SIINas account,” Reni stressed.
TKDN-IK certificates are issued free of charge. “No certification fees are charged to small industries, and the certification process is simple and fast, taking only five working days,” Reni said. TKDN-IK certificates are valid for three years and can be extended once for two years.
Reni continued that the P3DN policy in procurement of goods and services by central and regional governments and state- and region-owned enterprises is expected to expand the market for domestic products while creating a large multiplier effect to maintain national economic stability. “The P3DN policy is also expected to awaken nationalism across society to love and be proud of using domestic products,” she added.
The Government's support for domestic products, especially those made by MSMEs and SMIs, is seen in several policies, such as Presidential Instruction No. 2 of 2022 on Accelerating Increased Use of Domestic Products and Products of Micro and Small Enterprises and Cooperatives to Support the National Proud of Made in Indonesia Movement in Government Procurement of Goods/Services.
The regulation stresses the need to plan, allocate and realize 40 percent of the goods/services spending budget for domestically produced products of micro and small enterprises and cooperatives. Presidential Instruction 2/2022 also mandates accelerating the listing of domestic products and products of MSMEs (including SMIs) and Cooperatives in the national, sectoral and local e-Catalogs.
“The government is also working to increase the realization of government goods/services spending on domestically produced products of micro and small enterprises and cooperatives through LKPP Direct Procurement Spending, known as Bela Pengadaan,” she added.
The Director General of IKMA also said Government Regulation No. 29 of 2018 on Industrial Empowerment requires the Government to use domestic products when there are domestic products whose combined TKDN and Company Benefit Weight (BMP) value is at least 40%.
“Domestic products with a 40% TKDN value will certainly be this country's heroes. With this effort, we hope more and more domestic products can meet government and business procurement needs,” Reni said.
Source: Press Release of the Ministry of Industry of the Republic of Indonesia