Government Prepares TKDN Roadmap for Each Sector

The government is currently preparing further steps in the Domestic Component Level (Tingkat Komponen Dalam Negeri– “ TKDN ”) policy to enhance the competitiveness of the national industry. In addition to continuing the new calculation method based on location, labor, and raw materials, the government has begun drafting a sectoral roadmap to strengthen domestic added value.

Mari Elka Pangestu, Vice Chairperson of the National Energy Council (Dewan Energi Nasional–“ DEN ”), stated that this roadmap will regulate the gradual targets for increasing TKDN in each industrial sector. “The sectoral roadmap will be developed to improve competitiveness and domestic added value,” Mari explained.

Another new policy step is the alignment of TKDN regulations across ministries, which previously operated independently. Through this harmonization, TKDN standards can be implemented without overlap among agencies. Additionally, the TKDN policy will be integrated with the ease of doing business agenda, ensuring that local content requirements do not become barriers to investment.