TKDN Compliance in Indonesia: Beyond Government Contracts
Indonesia's domestic content requirement covers government procurement and private sector supply chains alike. Understand how TKDN is calculated and what it means for your bid eligibility.
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Most manufacturers don’t say “TKDN.” They say “made in Indonesia,” treating it as a marketing line rather than a formal compliance obligation. That gap in understanding is costing foreign brands market share. TKDN (Tingkat Komponen Dalam Negeri, or Domestic Component Level) is governed under Ministry of Industry Regulation 35/2025 and measures how much of a product’s value, materials, labour, and overhead, originates domestically in Indonesia.
It’s Not Just About Government Procurement
TKDN compliance is essential for participating in government procurement. Many public tenders require a minimum domestic content level to bid at all. But its relevance extends further. TKDN scoring increasingly factors into private sector purchasing decisions too, as “local content” becomes a genuine buying consideration for Indonesian distributors and B2B customers, not just a government checkbox.
How TKDN Is Calculated
TKDN is assessed across three possible categories depending on what you’re supplying: goods (calculated from local material, labour, and overhead against totals), services (calculated from local labour, tools, and facilities against totals), and combination contracts (blending domestic value across both goods and services components). Each category is independently weighted. A supplier can achieve a strong TKDN score on the services side even with lower domestic content in physical goods, or vice versa.
We don’t publish specific sector-by-sector minimum thresholds here, since these vary and change. The accurate, current threshold for your specific product or sector should be confirmed directly against the latest MOI schedule rather than relied on from general guidance.
Estimate Your TKDN Score
Use our free interactive TKDN Calculator to estimate your Domestic Component Level across all three assessment categories: goods, services, and combined contracts. Enter your local and total cost figures and get an instant result based on the MOI Regulation 35/2025 formulas.
BridgifyAsia handles TKDN strategy end to end: initial assessment of your current domestic content position, documentation and calculation support, submission liaison, and ongoing guidance as you work to improve your score for procurement eligibility.
Frequently Asked Questions
Does TKDN only matter if I'm bidding for government contracts?
No. While it's essential for public procurement eligibility, TKDN is increasingly a factor in private sector purchasing decisions too, as local content becomes a genuine consideration for Indonesian buyers and distributors.
What's the difference between TKDN for goods vs. services?
Goods TKDN is calculated from local material, labour, and overhead costs. Services TKDN is calculated from local labour, tools, and facilities costs. Combination contracts blend both. Each is assessed independently.
What's the minimum TKDN score I need?
This varies by sector and product category and changes over time. We don't quote general thresholds here since an outdated number is worse than no number. Confirm your specific requirement against the current MOI schedule.
Can I improve my TKDN score over time?
Yes. TKDN isn't fixed at first assessment. Sourcing more materials or labour domestically, or restructuring how services are delivered, can improve your score for future tenders.
Does TKDN apply to services companies, not just manufacturers?
Yes. The services category exists specifically for this, assessed on local labour, tools, and facilities rather than physical materials.
What regulation governs TKDN requirements?
Ministry of Industry Regulation 35/2025 is the current governing regulation. Confirm you're working from the current version, as TKDN rules have been revised over time.
Key Benefits
Our Process
Initial Assessment
We review your product, current status, and specific requirements to identify the optimal regulatory pathway.
Document Preparation
Our team compiles, translates, and legally notarises all required documentation according to Indonesian standards.
Submission & Liaison
We submit applications to the relevant authorities and actively follow up to prevent bureaucratic delays.
Approval & Handover
Upon successful certification or registration, we deliver all official documents and advise on ongoing compliance.
Enquire about TKDN Compliance
Our senior partners will review your requirements and respond within one business day.