Indonesia Seeks to Cut TKDN Certificate Issuance Time and Cost

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Rabu, 7 Mei 2025 - 12:46 WIB

Jakarta, VIVA – Indonesian Minister of Industry Agus Gumiwang Kartasasmita announced that his ministry is in the process of revising regulations on the Domestic Component Level (TKDN) to streamline the certification process by cutting both the time and cost required for issuance.

He stated that the revision will focus on streamlining the governance process for TKDN calculation, which is expected to assist and ease the process for businesses seeking TKDN certification.

“We’re currently discussing how we can reform governance, reform the business process, and reform the calculation method for TKDN certification,” minister Kartasasmita said on Tuesday (May 6).

“We hope that once this is enacted as regulation, it will allow businesses to obtain TKDN certificates more quickly, more easily, and at a lower cost,” he added.

The minister explained that the TKDN revision does not relate to the minimum thresholds that have already been set.

However, the issuance process is expected to become faster and more affordable for business players.

“We want to change the assessment process for certificates that might have previously taken a year—we want to shorten it to three months. And for those that currently take three months, we want to speed that up to 10 days. It’s all about acceleration,” minister Kartasasmita remarked.

He also discussed the TKDN regulation reform as part of the Ministry of Industry’s efforts to deregulate and simplify administrative procedures.

This TKDN reform will contribute to the government’s broader deregulation initiative aimed at speeding up and simplifying business activities.

“So, the investment climate and business environment will improve once we implement the reform and release the new regulations,” he concluded.