(Jakarta, 6th) Indonesian Minister of Industry Agus Gumiwang Kartasasmita stated that the government is currently reforming regulations related to the Domestic Component Level (TKDN) policy, including accelerating the issuance process of TKDN certificates.
He pointed out in Jakarta on Tuesday: "We are currently discussing how to reform governance systems, reform business processes, and reform the calculation methods for TKDN certificates."
This reform is part of the Indonesian government's effort to relax regulations and simplify administrative processes, aiming to provide a more convenient operating environment for businesses.
Agus stated that this reform will improve the investment climate and business environment. After the implementation of the new regulations, the calculation process for TKDN certificates will be faster, simpler, and lower in cost, thereby reducing the expenses required by enterprises when applying for this certificate.
"We believe that once the new regulations are introduced, enterprises will find it quicker, more convenient, and less costly to apply for TKDN certificates," he said.
He added that this reform work started as early as the beginning of February 2025, well before U.S. President Donald Trump announced the "Reciprocal Tariffs Policy."
It is reported that Trump announced on April 2, 2025, the implementation of reciprocal tariffs on several countries, including a 32% tariff on Indonesian goods and a 10% base tariff on all imported products.
Despite external pressures, Agus emphasized that the Ministry of Industry will continue to promote relevant reforms and plans to complete the formulation of new regulations as soon as possible. The ministry will also conduct public consultations to widely solicit opinions from stakeholders.
"We believe it is necessary to evaluate regulations related to the ease of domestic production, especially concerning the TKDN parts that must optimize business processes," he reiterated.
He pointed out in Jakarta on Tuesday: "We are currently discussing how to reform governance systems, reform business processes, and reform the calculation methods for TKDN certificates."
This reform is part of the Indonesian government's effort to relax regulations and simplify administrative processes, aiming to provide a more convenient operating environment for businesses.
Agus stated that this reform will improve the investment climate and business environment. After the implementation of the new regulations, the calculation process for TKDN certificates will be faster, simpler, and lower in cost, thereby reducing the expenses required by enterprises when applying for this certificate.
"We believe that once the new regulations are introduced, enterprises will find it quicker, more convenient, and less costly to apply for TKDN certificates," he said.
He added that this reform work started as early as the beginning of February 2025, well before U.S. President Donald Trump announced the "Reciprocal Tariffs Policy."
It is reported that Trump announced on April 2, 2025, the implementation of reciprocal tariffs on several countries, including a 32% tariff on Indonesian goods and a 10% base tariff on all imported products.
Despite external pressures, Agus emphasized that the Ministry of Industry will continue to promote relevant reforms and plans to complete the formulation of new regulations as soon as possible. The ministry will also conduct public consultations to widely solicit opinions from stakeholders.
"We believe it is necessary to evaluate regulations related to the ease of domestic production, especially concerning the TKDN parts that must optimize business processes," he reiterated.