The ministry will facilitate the program through the National Priority Budget (PN) of Rp20 billion, he informed.
"We will facilitate the program for products in the medical devices industry, agricultural tools and machinery, pharmaceuticals, machinery, and electronics and telematics," he said.
The ministry will also encourage TKDN certification of products for the metal, electricity, chemical, fertilizer, ceramics, cement, textiles, automotive and component industries, as well as the Small and Medium Industry (IKM), he added.
The industrial sector can take advantage of the free TKDN certification facility offered by the ministry by fulfilling some requirements, which include holding an Industrial Business License (IUI) or Business Identification Number, a company establishment deed, a Taxpayer Identification Number, and registering on the National Industrial Information System (SIINas), he informed.
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"All companies that have IUI, location permits, production factory, and investing in Indonesia can take advantage of the free TKDN certification facility from the government," Widodo said.
To avail the facility, industries will need to have a minimum TKDN value of 25 percent, he informed adding, a maximum of eight products can be certified in a year.
A TKDN certificate serves as proof of the legality of the value of the domestic component level in a product, he explained.
The government has continued to encourage the optimization of the mandatory use of domestic products, he said. Government Regulation Number 29 of 2018 concerning Industrial Empowerment is one of the regulations that regulate this mandate, he added.
"Domestic products must be used in the procurement of goods/services whose budget is sourced from the State Budget (APBN), Regional Budget (APBD), State-Owned Enterprises (SOEs), Regional Owned Enterprises (BUMD), cooperation with the government, and those who seek resources controlled by the state," Widodo explained.
Related news: Domestic medicines to use TKDN materials: Health Ministry
Translator: Sella P G, Resinta S
Editor: Suharto
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