Indonesia introduces new regulations to simplify TKDN certification process

The Minister of Industry has recently officially promulgated the Minister of Industry Regulation No. 35/2025, which overhauls the certification system for domestic composition requirements (TKDN).The new regulations aim to streamline processes, attract investment and support President Prabowo's development plans.

The four key reforms include: companies that build factories in Indonesia and employ local workersAutomated acquisition of 25% TKDN base scoreInvestment in R&DAdditional 20% bonus points may be awardedThe

In addition to the time of accreditationFrom 22 working daysReduction to 10 working daysSMEs can adopt"Self-declaration"Mechanisms.Licensed within 3 daysThe validity of the certificate for the elimination of the total cost-based calculation method (except for services) was extended to five years, and companies were also allowed to voluntarily label their products with the TKDN value.

The Minister of Industry emphasized that the new regulations were not forced by external pressure, but were designed toImproving the business environment and promoting local industries.The regulations apply to participation inGovernment procurement projectsbusinesses, aiming to ensure that state spending truly benefits the Indonesian economy. The original Minister of Industry Regulation No. 16/2011 has been in place for 14 years and is considered unresponsive to current industry needs.