The Head of Nusantara Capital City Authority (Otorita Ibu Kota Nusantara– “ OIKN ”) has issued Regulation No. 8 of 2026 (“ Regulation 8/2026 ”) on the Increased Utilization of Domestic Products (Produk Dalam Negeri– “ PDN ”) During Procurements of Goods/Services (“ Procurements ”) by OIKN. In essence, Regulation 8/2026 has now imposed strict localized sourcing obligations upon all development projects that are initiated within Indonesia’s new capital city.
Stricter IKN Procurement Rules Introduced: Mandatory 25% TKDN Threshold Now Applies to Domestic and Imported Products
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