The Domestic Component Level (TKDN) represents the value of using goods or services sourced from within the country. This policy aims to advance Indonesia's economy by supporting local industries and reducing the public's dependence on imported products. TKDN is one of the government’s instruments to develop domestic industries and promote the use of local products.

According to the Indonesian Ministry of Industry, users of domestic products are required to use products with a TKDN value and a Company Benefit Weight (BMP) of at least 40 percent. The main goal of this policy is to support the Increase in the Use of Domestic Products (P3DN). Products with TKDN certification will be included in the priority category in the electronic catalog, providing additional benefits for domestic business owners.

The government has set priority sectors with specific TKDN percentages to be met, including the healthcare equipment industry with a TKDN of over 60%, the agricultural machinery industry over 43%, the oil and gas equipment industry between 24%-40%, the electrical industry over 40%, and the substation industry with a TKDN between 17%-65%.

 

Source: kumparan.com