How to Apply for TKDN Certification in Indonesia

TKDN certification—Tingkat Komponen Dalam Negeri—is a mandatory requirement for many businesses operating in Indonesia, especially those supplying goods and services to government projects or state-owned enterprises. TKDN certification verifies the percentage of local content used in your product or service. In recent years, the Indonesian government has enforced TKDN compliance more strictly to support domestic industry, reduce reliance on imports, and improve national competitiveness. If you plan to supply products or services in sectors such as telecommunications, construction, energy, or manufacturing, understanding how to apply for TKDN certification is essential. 1. Understand the TKDN requirements Before applying, it is essential to understand which regulations apply to your product or service. TKDN calculation standards are regulated by the Ministry of Industry, and in some sectors, in cooperation with other ministries or regulators. Typically, the TKDN value is calculated from: - Material components: the proportion of local materials or parts used. - Labor component: the share of Indonesian labor involved. - Overheads: expenses incurred within Indonesia. Each component has a specific threshold you must meet. For example, certain telecommunications equipment must have a minimum TKDN percentage to qualify for government procurement. 2. Prepare documents Applying for TKDN certification requires detailed documents to prove the source and proportion of your local content. Common documents include: - Company legal documents (e.g., deed of establishment, business license). - Product specifications and bill of materials. - Production flow chart. - Cost breakdown (materials, labor, overheads). - Proof of Indonesian labor usage. - Previous certifications (if any). Ensure all documents are accurate and complete. Incomplete submissions often delay the process. 3. Verification body The Ministry of Industry authorizes independent verification bodies (surveyors) to assess TKDN calculations. After choosing your preferred surveyor, you submit your application and supporting documents. The surveyor will: conduct a thorough document review; visit your production facility to verify the data; and assess your production capacity and supporting evidence. This stage is critical, as any discrepancy can lead to rejection or a reduced TKDN score. 4. Verification and assessment The verification process usually takes 30–60 working days, depending on your product's complexity and the surveyor's workload. The assessor calculates the actual TKDN percentage and produces a report summarizing the findings. At this stage, your team must be able to assist with clarifications or provide additional evidence on request. 5. Issuance of the TKDN certificate Once assessment is complete, the surveyor issues an official TKDN certificate stating your product's local-content percentage. The certificate is valid for a specific period, typically 2–3 years depending on regulations. With it, you can: participate in tenders requiring a minimum TKDN; comply with mandatory reporting obligations; and promote your product as meeting local standards. Note that any change to your production process, materials, or suppliers may require re-certification. 6. Maintain compliance Once certified, it is essential to stay compliant by keeping your records updated, notifying the verification body of any significant changes, and preparing for potential audits. Non-compliance or falsified data can lead to sanctions, including revocation of the certificate and blacklisting from procurement opportunities.