This free certification is offered to products, with a minimum TKDN value of 25 percent
Jakarta (ANTARA) - The Ministry of Industry facilitates free local content requirements (TKDN) certification for small- and medium-sized industries (IKM) in order to revive business enthusiasm among domestic industry players amid pressures of the COVID-19 pandemic.

"The determination of TKDN is intended to encourage the absorption of all products produced by domestic industries in goods/services procurement projects, both through the State Budget and State-owned Enterprises budgets," Industry Minister Agus Gumiwang Kartasasmita stated in a statement here on Friday.

In commemoration of National Customer Day this year on September 4, Kartasasmita drew attention to the special program initiated by his ministry to facilitate the provision of free TKDN certification for nine thousand products for IKM and large-scale industries.

"This free certification is offered to products, with a minimum TKDN value of 25 percent. One company can be provided up to eight product certificates, and one facilitated certificate can load products with the same type of raw material and production process despite different dimensions," he explained.

The Ministry of Industry has appointed Sucofindo and Surveyor Indonesia to run the free TKDN certification program.

"Business actors in the country are expected to make the most of the free TKDN certification until the end of this year," Kartasasmita emphasized.

Head of the Center for Improvement of Domestic Products (P3DN) Nila Kumalasari expounded that the government had bolstered support for this free TKDN certification program through various regulations.

"Presidential Decree Number 12 of 2021 stipulates that ministries, institutions, and local governments are required to allocate at least 40 percent of the budget value for goods or services expenditures," she pointed out.

Imported products in the government's e-catalog application will be frozen if they have been produced domestically, with a TKDN value of 40 percent.

"We have collaborated with the Government's Goods/Service Procurement Policy Institute (LKPP), and they have agreed," Nilawati noted.

Thus, ministries and agencies as well as State-Owned Enterprises (BUMN) will no longer use imported products but will utilize products made by domestic industries.

"This year, the Ministry of Industry recorded a new page in history, by receiving budget from the Ministry of Finance to implement the TKDN certification program," she remarked.

Meanwhile, highlighting data from the Ministry of Industry's P3DN Center, Head of the Marine and Industrial Trade Strategic Business Unit PT. Sucofindo (Persero), Supriyanto, noted that in the past two years, there was a significant increase in the number of companies certifying their products.

"Until the end of August 2021, some 8,053 domestic products were recorded, with TKDN values above 40 percent and 5,959 domestic products, with TKDN values between 25-40 percent," Supriyanto expounded.

TKDN certification is conducted by registering with two independent surveyor institutions appointed by the Ministry of Industry namely PT Sucofindo (Persero) and PT. Surveyor Indonesia (Persero).

MSMEs, IKM, and large industries can register through Sucofindo, especially the Marine and Industrial Trade Strategic Business Unit, Local Content Facilitation Section in Jalan Raya Pasar Minggu Km. 34, 4th Floor, South Jakarta, as well as to Suconfindo's representatives in several regions.

Companies should prepare valid Company Establishment Deeds and Industrial Business Permits (IUI) or IUI submissions through Online Single Submission (OSS) at the BKPM that are already effective for the submission stage.

Furthermore, the surveyor agency will undertake a factory visit to check the production facilities in use and compute the proportion of local and imported raw materials being used, direct and indirect labor, and factory overhead.

“We invite producers to fill this year's quota to seize this free certification opportunity and take advantage of the program," Supriyanto added.

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Translator: Risbiani F, Resinta S
Editor: Sri Haryati
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