Jakarta (VNA) – The Indonesian Government is relaxing regulations on local content certification (TKDN) for small enterprises, aiming to improve market access and enable deeper participation in public procurement.
Minister of Industry Agus Gumiwang Kartasasmita said the new policy allows small and medium industrial enterprises (IKM) to obtain TKDN certification free of charge and adopt a self-declaration mechanism, helping simplify procedures and reduce compliance costs.
He noted that the move forms part of a broader strategy to enhance the competitiveness of domestic products, expand market share, and generate positive spillover effects across the economy.
The policy is aligned with the implementation of Presidential Instruction No. 2/2022, which requires at least 40% of government procurement spending to be allocated to goods and services provided by domestic small and medium-sized enterprises and industries.
At the same time, the government is accelerating efforts to integrate domestic products, including those from SMEs, cooperatives, and traditional production establishments into the national e-catalogue system, thereby improving their access to public tenders.
Director General for Small and Medium Industries Reni Yanita said the self-declaration mechanism will make it easier for businesses to meet TKDN certification requirements. The regulation is reinforced by Industry Ministry Regulation No. 35/2025, which took effect in December 2025 and marks a shift from strict pre-audit controls to more flexible post-audit supervision.
The easing of TKDN certification requirements for small enterprises is expected to support local economic growth, create jobs, and improve social welfare in Indonesia in the coming period./.
