Amid an onslaught of imports, the government continues to protect domestic products so they can be more competitive, meet demand and dominate the national market. The Ministry of Industry has a strategic policy of granting Domestic Component Level (TKDN) certificates to domestic industry so it can compete and get priority in spending on goods and services.
TKDN certificates guarantee that products made by domestic industry can be bought by the government through procurement. This includes small industries (IK), under Minister of Industry Regulation No. 46 of 2022 on Provisions and Procedures for Calculating TKDN for Small Industries.
“Issuing TKDN certificates for small industries is now easier and free of charge,” said the Director General of Small, Medium and Miscellaneous Industries (IKMA) at Kemenperin, Reni Yanita, in Jakarta on Thursday (12/1).
The Director General of IKMA said the ease takes the form of simplified TKDN calculation. “Small industries will calculate their own TKDN value, covering direct materials, direct labor, indirect factory costs (factory overhead) and development costs,” she said.
Reni said the TKDN-IK rules aim to make small industries targets of government, state-owned enterprise and regional enterprise spending. This year, Kemenperin targets 2 million SMI products to enter the e-catalog of the National Public Procurement Agency (LKPP).
“The P3DN policy in procurement by central and regional governments, regional and state-owned enterprises is expected to expand the market for domestic products, while creating a large multiplier effect to maintain national economic stability this year and reduce dependence on imports,” she said.
According to Reni, TKDN-IK certificate facilitation not only helps boost the national economy but also benefits small industry players, helping them move up and grow their businesses.
“In line with the President's direction on using domestic products and MSME products, government procurement must use products with at least 25% TKDN when there are products whose combined TKDN and BMP value is at least 40%,” she said.
TKDN-IK values are calculated independently by small industry players through the National Industrial Information System (SIINas). Small industries applying for a TKDN-IK certificate must therefore first have a SIINas account.
Small industries can then attach the required documents on domestic content for verification by Kemenperin. Verification takes only five working days, and the applicant can print the certificate themselves. “The whole process is done online through SIINas,” Reni added.
Kemenperin also continues to hold outreach and technical guidance on applying for TKDN certificates in various regions. Early this year, outreach began on 10 January 2023 in Banda Aceh. The technical guidance was attended in person by 200 small industry businesses in Banda Aceh City and Aceh Besar Regency with business registration numbers under industrial KBLI codes, and by around 500 businesses online.
Besides provisions and procedures for calculating TKDN for small industries, the Directorate General of IKMA also held outreach on the importance of Intellectual Property protection for industry amid market competition on 11 January 2023. At the event, the Directorate General of IKMA's Intellectual Property Clinic also offered IP registration assistance for small industries that do not yet have trademarks, copyrights, industrial designs or patents.
Throughout 2022, the Directorate General of IKMA's Intellectual Property Clinic facilitated IP registration for 497 trademarks. “Through cooperation with various ministries/agencies, regional governments and SMI associations, we hope SMIs will become more aware of the importance of IP in business competition,” Reni said.
Source: Press Release of the Ministry of Industry of the Republic of Indonesia