Indonesia presses for TKDN certification for electricity products

Indonesia presses for TKDN certification for electricity products

Illustration of officers checking electricity transmission. (ANTARA/HP-PLN/rst)

Jakarta (ANTARA) - The government continues to encourage electricity products in Indonesia to have a local content requirement (TKDN) certificate in a bid to substitute imported products while fostering greater self-reliance in the local electricity industry.

Industry Minister Agus Gumiwang Kartasasmita stated that the development of machinery and electricity supporting the equipment industry in Indonesia is currently expected to be in line with the increase in the use of domestic products.

"All communities and industries require electricity whose availability is continuous, affordable, and sufficient. This can spur domestic industries to provide quality and competitive electricity products," he affirmed.

The government is focused on strengthening the energy industry, especially the electricity sector since electricity has until now been one of the main energy sources used by the community and industry in the country.

The government has readied various programs for this sector, including providing nine thousand free TKDN certificates.

Efforts to increase the use of domestic products, including electricity infrastructure, are in line with the mandate of Presidential Regulation Number 14 of 2017 on Acceleration of Electricity Infrastructure Development.

According to the regulation, the use of local products is one of the key aspects in the construction of a 35 thousand-megawatt power plant and a transmission network of 46 thousand circuit kilometers of transmission lines.

Related news: Indonesia pushes local laptop production through TKDN policy

In an effort to realize TKDN in the electricity sector, the government requires synergy, support, and openness from all stakeholders.

"The involvement of domestic industries as partners in electricity projects, is expected to run optimally in accordance with the latest industrial conditions and capabilities," Kartasasmita affirmed.

Based on the Industry Ministry’s data, the import value of the electrical equipment industry reached Rp116 trillion in 2019 and declined to Rp103 trillion in 2020.

The decline in imports indicates that the electricity supporting industry in Indonesia is growing and is able to meet demand in the domestic market.

Currently, there are 3,404 certified electrical equipment products out of which 413 products have a TKDN value below 25 percent. Some 664 products have a TKDN value between 25 percent and 40 percent, and 2,327 products with more than 40 percent of the TKDN value.

The Indonesian Government believed that the policy of using domestic products and the rapid development of electricity infrastructure would have a wide multiplier effect, especially in boosting the performance of the national industrial sector.

"Electricity is like the heart of the industrial sector. Hence, it is not undue if investors keen to invest in Indonesia always look for available electricity supply," the minister concluded.  

Related news: Ministry backs local content certification of pharmaceutical products