Know More about Increase Domestic Production with TKDN Certification Indonesia

Industrial businesses must take TKDN certification Indonesia , also known as the Domestic Component Level, into account. The public authority itself has likewise given offices to modern organizations in the country to get the authentication.

It is crucial to apply for this certification if you are a business actor. Indeed, have you done that? In the event that you haven’t or have quite recently learned about this accreditation, you shouldn’t miss the conversation in the accompanying article.

Through the Ministry of Industry, the government intends to encourage domestic industrial businesses to obtain certificates at the Domestic Component Level (TKDN) by 2022. What’s going on? The Indonesian government wants 25 percent of the components of domestic goods to be made in the country. 1,250 domestic products with TKDN certification Indonesia are the government’s goal.

Telematics, medical devices, automotive, cement, textiles, agricultural tools and machinery, the metal industry, agricultural tools and machinery, and a number of small and medium-sized industries are expected to receive certificates.

The TKDN certification Indonesia an incentive for homegrown items as well as the Organization Advantage Weight (BMP) of 40%. The inquiry is, is TKDN esteem significant for homegrown items? The following article will help you comprehend TKDN’s meaning, rules, and technical calculations before responding to these questions.

What Is Certification in TKDN?

TKDN is a percentage of the value of domestically produced production components. It tends to be labor and products or a mix of the two. In this instance, it also includes the costs of shipping the products or services for each price item.

It should be noted that this TKDN certification Indonesia may play a role in determining who is superior and competent. In some agencies, this will be the deciding factor in who wins the procurement of goods and services.

Advantages TKDN ; TKDN Certification Indonesia

In general, TKDN is the value, expressed as a percentage, of Indonesian-made production components that are included in a product of goods and services or a combination of domestic goods and services. This additionally incorporates the transportation costs presented in the offering things for labor and products.

TKDN certification Indonesia on the other hand, refers to Domestic Component Level. In the auction process for goods and services in several agencies, TKDN may be one of the preferences that will select the winner.

Restrictions on the use of imported components for production materials in a certain percentage have been in place in an effort to implement domestic products. This is intended to ensure that domestic goods will eventually be exported to a number of significant nations in Asia, Europe, America, and Africa. There are a few advantages that should be known from TKDN, to be specific:

tkdn certification Indonesia
tkdn certification Indonesia

Techniques for Calculating the TKDN

Before obtaining a TKDN certification Indonesia, you must be aware of how complicated the calculation is. The company’s Benefit Weight (BMP) is added to the value of the goods or services in the calculation.

Computation of Labor and products

There are three components remembered for the computation of labor and products, specifically:

Components: domestically, raw materials that include components for assembly, fabrication, and final assembly are used.

Components: utilization of administrations beginning to end utilizing homegrown specialists and completed inside the country.

Combined Domestic Components: All processes, from the procurement of raw materials to domestic labor, are carried out within the country.


BMP is a worth of appreciation to organizations putting resources into Indonesia for engaging Little and Medium Endeavors (SMEs) through associations, giving work wellbeing offices, and local area improvement.

TKDN Estimation Recipes

TKDN certification Indonesia estimation of merchandise depends on an examination between the cost of completed products less the cost of unfamiliar parts to the cost of completed products. The cost of completed merchandise is the expense of creation brought about to deliver products.

Costs for production include:

However, profits, indirect company costs (also known as overhead), and output tax are not included.

In the process of buying goods or services, TKDN is very important. This is on the grounds that both TKDN certification Indonesia and BMP are significant necessities from the Service of Industry to acquire merchandise endorsements.

RUN System has a Quality Management

System product that is capable of managing numerous quality management process tasks, ensuring that the goods and services procurement process runs smoothly. Beginning with the process of material production and distribution through distribution completion. Learn all the more just in RUN Framework.

Application of TKDN’s Benefits

This TKDN certification Indonesia has numerous advantages for industrial businesses and society as a whole. Here are the advantages of carrying out TKDN that you really want to comprehend:

  1. The rise in PPh Income

TKDN will contribute to the rise in income tax or income tax. The PPh discussed here is a tax on Indonesian-made goods of all kinds. Products that enter Indonesia or are imported are still free on board or FOB abroad at this time. The government will gain more if the domestic industrial tax sector generates income.


  1. Increasing Employment

The domestic industry can proceed with product production and growth. This will continue, which will result in the creation of additional new jobs, thanks to TKDN.


  1. The improvement of people’s well-being will also be impacted indirectly by ongoing industrial sector movements. This is because the economy’s wheels are always turning.


  1. Parity with foreign brands

TKDN will also assist in achieving equality between foreign and domestic brands. It is possible for products made in the country to be comparable to those made in other nations.


  1. Creating a Good Supply Chain

This TKDN certificate’s ability to create a good supply chain is another advantage. In Indonesia, vendors will be encouraged to open factories. They will also be encouraged to provide assembly manufacturers with a large quantity of supplies.


  1. Fortifying Indonesia in the Southeast Asian Market

TKDN will assist with fortifying Indonesia as a creation base in the Southeast Asian market district. Obviously, this is possible if the ecosystem’s components function properly.

There are explanation about   TKDN certification Indonesia. Hope this article is useful.



CALL / WA : +62811-1280-843 Devi

Email : info@konsultanindustri.com

Leave a Reply

Your email address will not be published. Required fields are marked *