Purbaya Prepares Regulation for Over 40% Local Content
The Ministry of Finance will adjust regulations to accommodate companies with local content levels (TKDN) above 40 per cent, granting them the same access as firms in Special Economic Zones (KEK).
The policy was announced by Finance Minister Purbaya Yudhi Sadewa during the 12th Debottlenecking Session held by the Task Force for Accelerating Government Programmes to Support Increased Economic Growth (P3M-PPE) on Thursday, 23 July 2026.
“We will later arrange things so that domestic producers that already have factories here have the same opportunity to compete in KEK areas,” Purbaya said in a press release on Thursday, 23 July 2026.
The session, led by Purbaya together with Satya Bhakti Parikesit, Deputy for Economic Affairs at the Cabinet Secretariat, was attended by business players and relevant ministries and agencies to discuss various investment obstacles submitted through the debottlenecking channel.
During the session, the government discussed two complaints from businesses. The first complaint came from PT Tigaraja Putra Persada, which is developing an integrated tourism area and cable car in Lake Toba. The company said the project faced regulatory obstacles because railway regulations do not specifically cover cable cars as a tourist facility. In addition, part of the project site is located in protected forest areas, production forests, and other use areas (APL).
The government agreed on six follow-up measures for the issue, including coordinating to confirm the scope of the National Strategic Project (PSN) in the Lake Toba Super Priority Tourism Destination (DPSP) area, confirming the cable car classification with the Ministry of Transport, discussing the business scheme with the Ministry of Investment and Downstream Industry/BKPM, and holding further meetings with PT Tigaraja Putra Persada and the Directorate General of Railways to discuss regulatory aspects, business classification, tariffs, and safety. The Ministry of Forestry will also facilitate the completion of permits required by the company.
The second complaint was submitted by the Indonesian Electrical Equipment Producers Association (APPI) and PT Schneider Indonesia. The companies noted there was unequal competition in KEK areas because policies favour imported products over those manufactured domestically.
According to the complaint, local producers still bear import duties of 5 to 15 per cent on imported raw materials, income tax, regional levies, and costs of meeting Indonesian National Standard (SNI) requirements. Meanwhile, imported goods entering KEK areas receive various facilities, including exemption from SNI obligations. APPI and PT Schneider Indonesia also highlighted the import masterlist evaluation regulation, which they said had not been updated for six years.