Indonesia's Industry Minister Launches TKDN Policy Reform: Cheaper, Easier, Faster, More Transparent

Indonesia's Minister of Industry, Agus Gumiwang Kartasasmita, formally launched a reform of the Domestic Component Level (TKDN) policy and issued Ministerial Regulation No. 35 of 2025. The new policy is seen as an important milestone in strengthening national industry, aligned with President Prabowo Subianto's 'Asta Cita' vision, particularly in enhancing national self-reliance, creating high-quality jobs, and continuing to advance downstreaming and industrialization.

"The TKDN reform is a response to the needs of the business community and a concrete expression of the government's support for domestic industry. We want to ensure that Indonesian industry not only survives but leaps forward, bringing real benefits to the nation and the people," the Minister said at a press conference in Jakarta on Thursday (September 11).

The Minister explained that the TKDN policy reform rests on four pillars:

Incentives — including up to 20% additional TKDN value as a reward for R&D activities, at least 25% for enterprises investing domestically, and a simplified process for obtaining the Company Benefit Weight (BMP).

Simplification — a more convenient TKDN calculation method, certificate validity extended to five years, and simplified material-calculation methods.

Convenience — small enterprises can self-declare a TKDN value above 40%, with a five-year certificate validity. The TKDN value is also shown directly on product labels.

Speed — the certification process is greatly shortened: large-enterprise certification is cut from 22 working days to 10, and small-enterprise certification from 5 working days to 3.

In addition, the government strengthened oversight, imposing severe sanctions for violations, including revoking certificates, designating verification agencies, and recommending penalties for procurement officials.

Ministry of Industry records show that, as of September 11, 2025, 88,218 industrial products had obtained TKDN certification, involving more than 15,000 companies across all sectors. This achievement has a significant impact on production sustainability, employment, tax revenue and national economic growth.

At the same time, the Ministry announced that it had issued TKDN certification for four iPhone 17 models applied for by PT Apple Indonesia. These certifications were issued on September 11, 2025, after the products were found to comply with Ministerial Regulation No. 29 of 2017.

Agus emphasized that the issuance of these certifications reflects Apple's commitment to national regulations and its determination to continue strategic investment in Indonesia, including establishing the Apple Developer Academy and developing a digital-talent ecosystem.

"Apple's continued investment and the TKDN certification of the iPhone 17 prove that Indonesia remains an important partner for global enterprises building innovative industrial value chains," the Minister said.

The Minister was optimistic that the TKDN reform would strengthen the competitiveness of Indonesian industry and encourage global investment. "Through the TKDN reform, we want to ensure that Indonesian industry not only survives but leaps forward," he concluded.