KADIN INDONESIA
Indonesian Chamber of Commerce and Industry
In order to satisfy the mandate set out under Regulation of the Minister of Energy and Mineral Resources (“Minister”) No. 11 of 2024 on the Utilization of Domestic Products for the Construction of Electrical Infrastructure (“Regulation 11/2024”),[1] the Minister has issued Decree No. 191.K/EK.01/MEM.E/2024 (“Decree 191/2024”) on the Minimum Limits for Consolidated Domestic Components Levels (Tingkat Komponen Dalam Negeri – “TKDN”) for Goods and Services under the Scope of Electrical Infrastructure Construction Projects.[2]
Decree 191/2024 has been in force since 6 August 2024 and is applicable retroactively from 31 July 2024. Generally speaking, Decree 191/2024 sets the minimum TKDN rates for various types of electrical infrastructure, along with a list of components of goods and services. For reasons of concision, this edition of Indonesian Legal Brief (ILB) will confine its discussion to the following two topics:
Scope of Electrical Infrastructure and Classification of Officials
The minimum TKDN rates, as set out under the Appendix to Decree 191/2024, apply to different types of electrical infrastructure. Minimum TKDN rates are determined based on the amounts of domestic components that are contained within each of the goods/services that are utilized within a given type of electrical infrastructure.[3]
It should also be noted that the procedure for the calculation of TKDN fulfillment by electrical infrastructure will be implemented by two different officials. The table below sets out details for the scope of electrical infrastructure along with the relevant classifications of officials for each electrical infrastructure type:[4]
| Electrical Infrastructure Type | Officials Responsible for Determining TKDN Fulfillment | |
| Director-General for Electrical Power | Director-General for New and Renewable Energy and Energy Conservation | |
| Steam Power Plants (Pembangkit Listrik Tenaga Uap – “PLTU”) | √ | |
| Gas Power Plants (Pembangkit Listrik Tenaga Gas – “PLTG”) | √ | |
| Combined Cycle Power Plants (Pembangkit Listrik Tenaga Gas Uap – “PLTGU”) | √ | |
| Gas Engine Power Plants (Pembangkit Listrik Tenaga Mesin Gas – “PLTMG”) | √ | |
| Geothermal Power Plants (Pembangkit Listrik Tenaga Panas Bumi – “PLTP”) | √ | |
| Hydroelectric Power Plants (Pembangkit Listrik Tenaga Air – “PLTA”) | √ | |
| Solar Power Plants (Pembangkit Listrik Tenaga Surya – “PLTS”) | √ | |
| Wind Power Plants (Pembangkit Listrik Tenaga Bayu – “PLTB”) | √ | |
| Biomass Power Plants (Pembangkit Listrik Tenaga Biomassa – “PLTBm”) | √ | |
| Biogas Power Plants (Pembangkit Listrik Tenaga Biogas – “PLTBg”) | √ | |
| Waste-Based Power Plants (Pembangkit Listrik Tenaga Sampah – “PLTSa”) | √ | |
| Transmission Networks and Electrical Substations | √ | |
Minimum TKDN Rates and Examples of Components
As previously stated, minimum TKDN rates are determined by combining the relevant cumulative amounts of components that are utilized as a part of goods and services. These minimum TKDN rates will apply differently, depending on the type of electrical infrastructure concerned. Details of said cumulative amounts and examples of components are provided in the table below:[5]
| Electrical Infrastructure Type | Cumulative Amount of Domestic Goods and Services | Examples of Goods and Services Components |
| PLTU |
|
Steam turbines, boilers |
| PLTG | 10.39% | Gas turbines |
| PLTGU | 21.93% | Gas turbines and steam turbines |
| PLTMG | 23.96% | Gas engines and fuel supplies |
| PLTP |
|
Civil work, well drilling, fluid collection, reinjection systems |
| PLTA |
|
Metalwork, electromechanics |
| PLTS | 20% | Solar modules, inverters, mountings, cables and wiring, combiner boxes, etc. |
| PLTB | 15% | Metalwork, electromechanics, etc. |
| PLTBm | 21% | Direct materials, project management and engineering materials, working tools and facilities, constructions and fabrications, and general services |
| PLTBg | 25.19% | |
| PLTSa | 16.53% | |
| Transmission Networks |
|
|
| Electrical Substations |
|
It should also be noted that while components may differ between one type of electrical infrastructure and another, a number of components are more generally applicable across all types of electrical infrastructure, such as civil and steel structures, the balance of plant, instruments and control, feasibility studies, integrated construction services, inspection services, assessment and certification services, as well as supporting services.
Key Takeaways
Any types of electrical infrastructure that were covered under the scope of Decree 191/2024 and that have been in construction since 31 July 2024 will be subject to the TKDN provisions set out under Decree 191/2024. Furthermore, it should also be noted that calculation procedures for the fulfillment of TKDN will soon be regulated by relevant officials. As a result, business actors would be advised to assess their current TKDN levels in order to prepare for the forthcoming calculation procedures that will be introduced to determine their compliance with the minimum TKDN requirements.
Source: hukumonline.com
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