The Ministry of Industry recently officially issued Ministerial Regulation No. 35 of 2025, comprehensively reforming the calculation and certification mechanism for Domestic Component Level (TKDN). The new regulation will take effect on December 12, 2025, replacing the old regulations of 2011 and 2022, aiming to enhance the competitiveness of the domestic manufacturing industry and attract investment.
Core reform measures include: manufacturing investment of more than 25% can obtain TKDN bonus points; R&D activities can receive up to 20% additional points; simplification of Business Benefit Weight (BMP) standards, adding 15 optional indicators; SMEs are allowed to adopt "self-declaration" method, with TKDN scores potentially exceeding 40%; certificate validity extended to 5 years.
Supply chain analysis simplified from three layers to one layer, speeding up certification; for the first time, definitions of violations such as "TKDN whitewashing", false documents are clearly defined; penalties include revocation of certificates, cancellation of LVI qualification, etc. The Minister of Industry stated that the new regulation aims to ensure that national budget expenditures can create double value domestically, benefiting workers, businesses, and the country. The regulation is seen as an important measure to promote manufacturing upgrading and enhance the competitiveness of the local industry.
The Ministry of Industry recently officially issued Ministerial Regulation No. 35 of 2025, comprehensively reforming the calculation and certification mechanism for Domestic Component Level (TKDN). The new regulation will take effect on December 12, 2025, replacing the old regulations of 2011 and 2022, aiming to enhance the competitiveness of the domestic manufacturing industry and attract investment.
Core reform measures include: manufacturing investment of more than 25% can obtain TKDN bonus points; R&D activities can receive up to 20% additional points; simplification of Business Benefit Weight (BMP) standards, adding 15 optional indicators; SMEs are allowed to adopt "self-declaration" method, with TKDN scores potentially exceeding 40%; certificate validity extended to 5 years.
Supply chain analysis simplified from three layers to one layer, speeding up certification; for the first time, definitions of violations such as "TKDN whitewashing", false documents are clearly defined; penalties include revocation of certificates, cancellation of LVI qualification, etc. The Minister of Industry stated that the new regulation aims to ensure that national budget expenditures can create double value domestically, benefiting workers, businesses, and the country. The regulation is seen as an important measure to promote manufacturing upgrading and enhance the competitiveness of the local industry.