Indonesian Political, Business & Finance News

Industry Minister: Accuracy of TKDN Self-Declaration Data Must Be Applied

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Regulation

Industry Minister Agus Gumiwang Kartasasmita has stated that data accuracy during the submission of Domestic Content Level (TKDN) self-declaration must be applied by small industries. Before TKDN self-declaration certification is issued, applicants must complete data entry in the National Industry Information System (SIINas).

“Validation processes must be conducted before certification application, so that only business operators validated as small industries can submit TKDN self-declaration certification requests,” said Agus Gumiwang in a written statement on Monday, 2 March 2026.

The TKDN self-declaration scheme is regulated under Minister of Industry Regulation No. 35 of 2025 concerning provisions and procedures for TKDN certification and company benefit weights, enacted on 11 September 2025. Under the Regulation of the Director General of Small, Medium and Miscellaneous Industries No. 261 of 2025, small industries applying for certification must be registered in SIINas, have maximum business capital of Rp 5 billion (excluding land and buildings), and possess a classification under the Standard Industrial Classification (KBLI) for industrial sector businesses in accordance with applicable regulations.

Agus stated that TKDN self-declaration certification facilitates small industries with shorter processing times and no cost. Once obtained, the certification is valid for five years.

“Small industries that have obtained TKDN self-declaration certificates can participate more broadly in government procurement of goods and services,” he said.

The Director General of Small, Medium and Miscellaneous Industries at the Ministry of Industry, Reni Yanita, stated that business operators must complete company data and submit company reports from the previous quarter. Additionally, they must submit a validation request as a small industry through SIINas.

The validation request must be accompanied by uploaded evidence of production process videos at the factory and videos of the business location or factory area with embedded geographical location information. After this, said Reni, the validation team will examine the conformity of company data and videos within a maximum of 10 days from receipt of the request.

“The team can also conduct direct field inspections or online verifications,” she said.

Reni stated that the assessment weight for TKDN self-declaration is the same as TKDN through Independent Verification Agencies (LVI), namely 75 per cent direct materials or components covering main components, 10 per cent direct labour, and 15 per cent indirect factory costs. A minimum TKDN of 25 per cent can be achieved as long as the company invests and produces in Indonesia, undertaken by all or part of Indonesia’s workforce.

Currently, the Ministry of Industry has recorded 121 companies that have been validated as small industries as of 22 February 2026 since TKDN self-declaration was implemented. The registered business entities come from various industrial sectors.

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