The Ministry of Industry (Kemenperin) continues to strengthen the implementation of the Domestic Component Level (TKDN) policy as a strategic instrument in encouraging the use of national industrial products and services. This commitment is realised through the dissemination of the Secretary General of the Ministry of Industry Regulation on Technical Guidelines for Calculating the TKDN Value of Goods and Calculating the TKDN Value of Industrial Services, which was carried out as part of the 2025 Domestic Product Business Matching series of activities.

Minister of Industry Agus Gumiwang Kartasasmita emphasised that the Domestic Product Use Enhancement (P3DN) policy plays a strategic role in maintaining and strengthening the added value of the national manufacturing industry. According to him, the use of domestic products is not merely a matter of purchasing preferences, but is an important instrument for deepening the industrial structure, strengthening upstream-downstream linkages, and ensuring that economic added value continues to be created domestically.

"The results of the study show that every Rp. 1 spent on domestic products generates an economic impact of up to Rp. 2.2. This finding confirms that the use of domestic products has a significant and sustainable multiplier effect on national economic growth," said Minister of Industry Agus Gumiwang Kartasasmita in his speech at the opening of the 2025 Domestic Product Business Matching event in Jakarta on Monday (15/12).

In line with this, Head of the Centre for the Promotion of Domestic Product Use (P3DN) Heru Kustanto explained that these technical guidelines for calculating TKDN are mandated by Minister of Industry Regulation No. 35 of 2025, specifically Articles 13 and 17, which grant the Secretary General of the Ministry of Industry the authority to determine the procedures for calculating the TKDN value of industrial goods and services.

‘These technical guidelines have been compiled to provide certainty, uniformity and transparency in the TKDN calculation process, so that they can serve as clear guidelines for business actors, independent verification institutions and all stakeholders,’ said Heru.

During the dissemination, Heru explained that the calculation of the TKDN value of goods is based on three main components, namely direct materials with a weight of 75 per cent, direct labour of 10 per cent, and indirect factory costs of 15 per cent.

‘The components calculated include direct materials, direct labour, and indirect factory costs that reflect domestic investment and production activities, both in-house and through cooperation with other industrial companies, and all must be supported by supporting documents,’ he explained.

He added that the Ministry of Industry also provides an additional 20 per cent TKDN value for goods, which is calculated based on the intellectual capacity or brainware of the company, including through investment in research and development, the existence of research and development divisions and programmes, and the implementation of research and development results in the production process. In addition to goods TKDN, the Ministry of Industry also promotes the calculation of Industrial Services TKDN, which is based on a comparison of domestic industrial service costs to total industrial service costs, including labour costs, work tools or facilities, and general services. This calculation results in an Industrial Services TKDN Certificate as a form of official recognition of the level of domestic content in industrial services.

Currently, there are 71 Indonesian Standard Industrial Classification (KBLI) industrial services grouped into 12 categories, ranging from industrial design and construction services, research and design services, maintenance and repair services, to industry 4.0 support services and creative content. The results of this calculation process are documented in the Industrial Services TKDN Certificate issued by the Ministry of Industry as a form of official recognition of the level of domestic content in industrial services.

Through the dissemination of these technical guidelines, the Ministry of Industry hopes that business actors will gain a more comprehensive and accountable understanding of the TKDN calculation mechanism, thereby increasing participation in the P3DN programme. These efforts are expected to strengthen the national industrial structure, increase domestic added value, and have a tangible impact on economic growth and national employment.