Industry Minister Agus Gumiwang Kartasasmita said on Friday that the government continues to encourage new investment, including through Regulation No. 176/PMK.011/2009 on Import Duty Exemption for Machinery, Goods, and Materials for Industry Development or Expansion.
One of the incentives is an import duty exemption on goods and materials for production for up to four years, provided that companies use locally made production machinery for at least 30 percent of their total machine value.
“The machinery industry plays an important role in the national economy, serving as capital goods across various sectors, both in manufacturing and beyond,” he said.
Director General of Metal, Machinery, Transportation Equipment, and Electronics (ILMATE) at the Ministry of Industry, Setia Diarta, noted that the calculation of domestic machinery use is regulated under the Minister of Industry Regulation.
Specifically, Minister of Industry Regulation No. 82/2024 on the Use of Locally Made Production Machinery provides guidelines for calculating the use of domestic machinery and issuing certificates for companies utilizing import duty exemption facilities.
Director of Machinery and Agricultural Machinery, Solehan, emphasized that the incentive policy significantly empowers the domestic machinery industry.
“Through Regulation No. 82/2024, the government reaffirms its commitment to increasing domestic machinery use by granting incentives in the form of import duty exemptions on production raw materials,” he said.
To promote the use of these incentives, the Directorate of Machinery and Agricultural Machinery organized a socialization program on Incentive Policies for Capital Investment in Bandung on Thursday, August 21.
The event was attended by representatives from industries including food and beverage, chemicals, rubber and plastics, machinery and equipment, as well as motor vehicles, trailers, and semi-trailers.
Data from the Ministry of Investment and the Investment Coordinating Board showed that between 2021 and June 2025, only three companies received approval for raw material masterlists under the TKDN scheme with a four-year validity period.
This number remains very small compared to 174 approvals granted under the non-TKDN scheme during the same period, which had only a two-year validity period.
Related news: TKDN regulation reform discussion approaching final stage: Minister
Translator: Primayanti
Editor: M Razi Rahman
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