Indonesia Eases Local Content Certification for Small Industries
Indonesia Eases Local Content Certification for Small Industries
Jakarta. Industry Ministry is waiving certification fees and simplifying procedures for small manufacturers to obtain domestic component level (TKDN) certificates, aiming to boost their access to government procurement and expand market share.
Industry Minister Agus Gumiwang Kartasasmita said the facilitation includes a self-declare mechanism that allows small and medium industries (IKM) to apply for TKDN certification free of charge.
The policy forms part of a broader strategy to strengthen the competitiveness of locally made products in the domestic market and accelerate national industrial growth.
“The main objective is to expand the market share of domestic products while generating a significant multiplier effect to maintain national economic stability,” Agus said on Thursday.
He added that government support for local products, particularly from IKM, is reflected in Presidential Instruction No. 2/2022, which mandates that 40% of government procurement spending be allocated to goods and services produced by local MSMEs and small industries.
“Through this policy, the government is also accelerating the listing of domestic products, including those from MSMEs, IKM, and cooperatives, in national, sectoral, and local e-catalogs. This is expected to increase their participation in government procurement,” he said.
Director General for Small, Medium, and Miscellaneous Industries (IKMA) Reni Yanita said the ministry continues to assist small industries in applying for TKDN certification through the self-declare scheme.
“In this regulation, small industries are given easier access to meet TKDN certification requirements through the self-declare mechanism,” Reni said.
The facilitation is reinforced by Industry Ministry Regulation No. 35/2025, which took effect on Dec. 11, 2025.
As part of its implementation, the ministry recently held a hybrid outreach and assistance program on TKDN certification at Politeknik AKA Bogor, attended by 65 in-person participants from Bogor and more than 250 participants online nationwide.
“Going forward, this policy is expected to continue delivering positive impacts on local economic growth, job creation, and overall public welfare,” Reni said.
To qualify for TKDN self-declare certification, businesses must be registered in the National Industrial Information System (SIINas) and validated as small industries under IKMA Director General Regulation No. 261/2025.
Tags: Keywords: