The Ministry of Industry is gearing up to implement adjustments in the calculation method for the Domestic Component Level (TKDN).

Minister of Industry Agus Gumiwang Kartasasmita has announced that this adjustment in TKDN calculation aligns with the directives set forth by President Joko “Jokowi” Widodo. In a statement made during the Business Matching 2024 event held in Denpasar on Tuesday, March 5, 2024, Agus emphasized that this initiative is part of an ongoing process aimed at refining the approach to assessing TKDN.

Agus elaborated on the forthcoming changes, highlighting the need to tailor TKDN calculation methodologies to the unique characteristics of various industrial subsectors. He stressed the importance of evaluating whether the existing calculation, predominantly based on cost considerations, remains the optimal approach for each subsector or product category. By conducting a comprehensive evaluation, the ministry aims to determine whether an alternative method, such as process-based calculations, would better suit the specific attributes and dynamics of individual industries.

Furthermore, Agus underscored the overarching objective behind this adjustment, emphasizing its pivotal role in incentivizing industries to enhance their compliance with domestic component level requirements. By fine-tuning the calculation methodology to better reflect the diverse nature of Indonesia's industrial landscape, The ministry seeks to create a more conducive environment for industry players to meet and exceed TKDN thresholds.

Agus also outlined the broader implications of these adjustments, emphasizing their potential to expedite progress without compromising the integrity of the domestic industry. He reiterated the government's commitment to fostering a balanced and sustainable industrial ecosystem, wherein initiatives such as TKDN adjustments serve as catalysts for industry growth and innovation.

In conclusion, Agus reiterated the ministry's proactive stance in addressing evolving industry dynamics and regulatory requirements. By embracing flexibility and adaptability in TKDN calculation methodologies, the ministry aims to empower industries to thrive in an increasingly competitive global landscape while bolstering Indonesia's position as a hub for industrial excellence and innovation.