Ministry of Industry Facilitates SME Entrepreneurs Through Self-Declared TKDN Certification
Jakarta – Indonesia’s Ministry of Industry (Kemenperin) has simplified the process for small and medium enterprises (SMEs) to obtain domestic content level (TKDN) certificates through a free and expedited self-declaration scheme accessible via the National Industrial Information System (SIINas).
Industrial Minister Agus Gumiwang Kartasasmita announced in Jakarta on Monday that the policy represents part of a broader government reform of the TKDN system designed to create a more transparent, accountable, and accessible process for domestic industry players.
The reform has been formalised through Industrial Ministry Regulation No. 35 of 2025 concerning TKDN Certification Provisions and Company Benefit Weighting (BMP) Procedures.
Under this policy, in addition to the existing certification scheme through Independent Verification Bodies (LVI), small industry operators can now obtain TKDN certificates through a self-declaration mechanism accessed via SIINas.
“The simplified calculation and special treatment for small industry through the self-declaration mechanism is designed to boost the confidence of small enterprises to compete in larger markets. However, this policy reform includes oversight through data verification and accuracy checks before TKDN product applications are submitted,” said the Industrial Minister.
The minister emphasised that verifying data accuracy and consistency is essential to prevent potential misuse of the TKDN self-declaration mechanism.
“The self-declaration TKDN certification represents a facility for small industry with shorter certification periods and no cost burden, allowing enterprises to obtain TKDN certificates valid for five years,” the minister stated.
To ensure the scheme targets the right beneficiaries, the ministry has implemented a validation mechanism for small industry operators through SIINas before certification applications. These requirements are outlined in Director General Regulation No. 261 of 2025 on Technical Guidelines for Small Industry Operator Validation for Self-Declared TKDN Value Calculation.
Under the regulation, companies eligible for the TKDN self-declaration scheme must be small industries registered on SIINas, have maximum business capital of Rp 5 billion (excluding land and buildings), and have submitted company data through the system.
Reni Yanita, Director General for Small, Medium and Miscellaneous Industry (IKMA), explained that industry operators who have completed company data and submitted their latest quarterly reports must file validation applications through SIINas.
“Subsequently, the IKMA Directorate General validation team will examine data consistency and conduct verification within a maximum period of ten days from the application submission date. The team may also conduct on-site inspections or remote verification,” Yanita said.
As of 22 February 2026, 121 companies had been validated as small industries and were eligible to apply for TKDN certification through the self-declaration scheme.
In TKDN calculations, the weighting criteria for the self-declaration scheme mirrors the LVI verification method, comprising 75 per cent direct material or materials including main components, 10 per cent direct labour costs, and 15 per cent indirect factory costs.