Latest News on Local Content Level Requirements in Indonesia

Based on the Government Regulation of the Republic of Indonesia Number 29 of 2018 concerning Industrial Empowerment, the Local Content Level (TKDN) is the amount of domestic content in goods, services, and a combination of goods and services. Regulation of the Minister of Industry of the Republic of Indonesia Number 16 of 2011 explains total components calculated on the product are raw materials, design, and engineering that contain elements of manufacturing, fabrication, assembly, and completion of work originating and carried out domestically. The local component of services is the use of services up to final delivery by utilizing personnel such as experts, work tools including software, and supporting facilities originating and implemented within the country.

The government's goals through implementing TKDN include the following:

Grow the use of local components in the production process or service
Minimize imported product
Reducing dependence on foreign products through optimizing government spending
Increasing job opportunities

The transaction for medical devices and pharmaceuticals process is through the e-Katalog system. One of the strategies to use e-Katalog in increasing the business revenue is the rise of TKDN value. Other regulations related to the calculation of TKDN for pharmaceutical products and medical devices are explained in the Regulation of the Minister of Industry of the Republic of Indonesia Number 31 of 2022 for the calculation of TKDN of medical devices and IVD medical devices and the Regulation of the Minister of Industry of the Republic of Indonesia Number 16 of 2020. The latest regulation set the obligation of using domestic products with the total TKDN value and a Company Benefit Weight (BMP) value amount to at least 40% for the product, with a minimum of 25% local contents. There is a TKDN of 25% -40% in 1,628 and 40% in 234 medical materials and equipment. The application of TKDN will increase competitiveness significantly. We, PT Inspiry Indonesia Consultants, can assist in issuing TKDN within 3 months.

Contact us via:

E-mail: inspiryindonesiakonsultan@gmail.com

Website: www.inspiryconsultant.com

Instagram: @inspiry.indonesia

Mobile phone : +62 877 6777 1778

Salam Inspirasi,