"For the new capital’s development, the requirement to use TKDN (products) has been included in the project tender process; hence, it is automatically entrenched in the project contracts,” head of the ministry's new capital development task force, Danis Hidayat Sumadilaga, said here on Saturday.
Contractors undertaking projects in the new capital are required to use domestic-made products whose components can be made domestically, he added.
"If there is an option to use domestic-made materials, it is required contractually to use the domestic-made products," the official said.
The task force is continuing to push for the use of domestic-made products in the new capital’s development, in keeping with President Joko Widodo's instruction to do so, he added.
"Our obligation in aspects relevant to the domestic-made and domestic-component level-certified products use must be regulated in project contracts," Sumadilaga said.
Earlier, the ministry's Construction Services Development Institution (LPJK) said that the optimization of TKDN-certified products in Nusantara city’s development would open new jobs for people.
Coordinator V at LPJK, Manlian Ronald A. Simanjuntak, said that TKDN products must be enhanced to achieve 70–80 percent domestic component level.
In the material aspect, all stakeholders must ensure the use of local materials, and if constraints require the use of foreign-made materials, they must be processed by Indonesian-made machines in Indonesian factories, he added.
Meanwhile, construction companies, applicators, material producers, and service providers must also ensure that their human resource requirements are fulfilled by Indonesians to increase the TKDN level, Simanjuntak said.
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Translator: Aji Cakti, Nabil Ihsan
Editor: Rahmad Nasution
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