Jakarta (ANTARA) - Industry Minister Agus Gumiwang Kartasasmita stated that the reform of the domestic component level (TKDN) policy is not being carried out hastily and is not caused by pressure from other countries.

"We have carried it out since February 2025, way before the dynamics that have been developing lately," he said in a statement here on Sunday.

According to him, the reform is part of long-term efforts of the government to strengthen the national industry by increasing the use of local products.

This policy is also in accordance with the President's direction to enhance the structure of industry and increase national competitiveness.

"This reform is aimed at making this (TKDN) policy more adaptive and transparent and providing optimum benefits to domestic industry players," he said.

Kartasasmita affirmed that the government would continue to involve various stakeholders in carrying out the reform so that the implementation can run effectively and accurately.

Apart from that, he said that Presidential Regulation Number 46 of 2025 on Government Goods and Services Procurement, which was recently issued, reaffirmed the importance of the TKDN policy for domestic industries.

The regulation is a legal basis that strengthens the new direction of the TKDN policy, including the improvement of the verification mechanism, incentives for industry players, and strengthening supervision to boost commitment to utilizing domestic products in various sectors.

With this step, the ministry is optimistic that the national industry independence can be accelerated and the domestic manufacturing ecosystem can be strengthened.

Earlier, Minister Kartasasmita stated that the Indonesian government is currently conducting reform for the TKDN policy, including accelerating the certificate issuance.

This TKDN reform is part of the government's deregulation efforts, which will later expedite or facilitate business actors in carrying out activities.

According to him, this reform will later improve the investment climate and business environment.

Related news: TKDN reform to accelerate certificate issuance: Minister

Related news: Indonesia eases local content rules to support domestic industry

Related news: Downstreaming, TKDN policies drive economic growth: Minister



Translator: Ahmad Muzdaffar, Raka Adji
Editor: Azis Kurmala
Copyright © ANTARA 2025