TKDN, which stands for Domestic Content Level (Tingkat Kandungan Dalam Negeri), is a measure of the percentage of a product or service’s value that originates from local resources. It reflects the extent of local contribution to a product or service, considering factors such as raw materials, labor, and added value. The higher the TKDN value, the greater the local content.
The TKDN certification process is overseen by the Ministry of Industry in Indonesia. Companies seeking certification must submit a detailed report outlining the local content in their products. This report is then evaluated by the Ministry, which issues the certificate if the product meets the specified criteria. The TKDN percentage is calculated based on a formula that considers various factors
In the dynamic and competitive landscape of global industry, fostering local growth and development is paramount. The TKDN (Tingkat Komponen Dalam Negeri) Certificate stands as a vital instrument in this endeavour. It encourages businesses to prioritize local resources and capabilities, stimulating economic activity and job creation. By promoting the use of domestic materials and components, TKDN helps to develop local supply chains, reducing reliance on imports and strengthening the country’s industrial base.
Furthermore, TKDN certification can enhance a company’s competitiveness. Government procurement policies often favor products with higher TKDN levels, providing certified businesses with a competitive advantage in bidding for public contracts. Additionally, the certificate can improve a company’s image and reputation, signaling its commitment to supporting the local economy.
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AdBlue® contributes to national capacity development
TKDN certification is particularly crucial for industries like diesel exhaust fluid (DEF) production. AdBlue®, a vital component in reducing nitrogen oxide emissions from diesel engines, has seen increasing demand due to stricter environmental regulations. By promoting local DEF production, TKDN certification can contribute significantly to several aspects of the industry. This certification underscores the company’s commitment to developing and utilizing local resources, talent, and technology. Here’s how AdBlue® contributes to national capacity building:
- Skill Development By employing a predominantly local workforce, AdBlue® invests in skill development. This enhances the capabilities of the domestic labor market and ensures a steady supply of skilled professionals for the DEF industry.
- Technological Advancement AdBlue®’s use of local technology fosters innovation and technological growth within Indonesia. This not only benefits the DEF industry but also has a positive ripple effect on other sectors reliant on similar technologies.
- Supply Chain Strengthening A high TKDN requires a robust local supply chain. AdBlue®’s reliance on domestic suppliers encourages the growth and strengthening of local industries that provide raw materials and services. This creates a more resilient and self-sufficient industrial ecosystem.
- Economic Resilience By reducing dependency on imports, AdBlue® enhances economic resilience. This is particularly important in times of global economic instability or supply chain disruptions. A strong local DEF industry ensures that the country can meet its own needs independently.
- Policy Support AdBlue®’s achievement aligns with national policies aimed at promoting local industries. This not only garners government support but also sets a benchmark for other companies to follow, fostering a culture of local content utilization across various sectors.
In conclusion, TKDN certification is a valuable tool for driving local industry growth. By recognizing and rewarding domestic content, it incentivizes businesses to invest in local resources, create jobs, and strengthen the national economy. By strategically implementing TKDN certification and supportive policies, governments can empower the DEF industry to become a cornerstone of the nation’s economy while contributing to environmental sustainability.
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