Plan to Revise TKDN Regulations for Pharmaceutical and Textile Sectors Four Times a Year

The Ministry of Industry (“Kemenperin”) plans to revise the regulation governing the calculation of Domestic Component Level (Tingkat Komponen Dalam Negeri – “TKDN”) in the Chemical, Pharmaceutical, and Textile Industry (“CPT Industry”) sector up to four times within a year. The revision will be made to the Regulation of the Director General of the Chemical, Pharmaceutical, and Textile Industry (Direktur Jenderal Industri Kimia, Farmasi, dan Tekstil – “Dirjen IKFT”) No. 3 of 2025 on the Details of Main Components for Calculating the TKDN Value of Goods in the IKFT Sector (“Perdirjen IKFT 3/2025”).

“The revision will be conducted four times within a year, namely in the 3rd, 6th, 9th, and 12th months, in accordance with the established Standard Operating Procedures (SOP),” said Sri Bimo Pratomo, Secretary of the Directorate General of the IKFT.

The revision is intended to accommodate developments in the industry while also incorporating product proposals submitted by business actors so that such products may be included in the list of components eligible for TKDN value calculation.

Bimo stated that since the regulation came into force, several associations and companies have submitted proposals requesting that their products be included in the appendix of the Regulation. These proposals constitute one of the considerations in the periodic evaluation undertaken by the government.

Under this policy, the Dirjen IKFT has also stipulated that energy components will no longer be included as primary components in the structure for calculating industrial components in order to deepen the structure of the national industry.