Increase Domestic Production with TKDN Certification
TKDN certification, or Domestic Component Level, is one of the essential things that need to be considered by industrial companies. The government has also provided facilities for industrial companies to obtain the certificate.
If you are a business actor, it is essential to apply for this certification. Well, have you done that? If you still need to or have just discovered this certification, you should attend the discussion in the following article!
What is TKDN Certification?
TKDN is a percentage of the value of domestic production components, and it can be goods and services or a combination of the two. In this case, it also includes the transportation costs offered for each price item of the said goods or services.
This TKDN could be one of the factors that will determine who is superior and competent. This will be the determining element for the winner of the procurement of goods and services in specific agencies.
Benefits of Application of TKDN
Of course, this TKDN certification provides many benefits for industrial companies and society. Here are the benefits of implementing TKDN that you need to understand:
1. Increasing PPh Income
TKDN will help increase income tax or income tax. The PPh referred to here is a tax on various products produced in Indonesia.
So far, products that enter Indonesia or imported products are still accessible on board or FOB abroad. The government will benefit more if there is income from the domestic industrial tax sector.
2. Increasing Employment
The domestic industry can continue to grow and work to produce products, and TKDN will encourage this to continue and lead to the emergence of more new jobs.
Movements that continue to occur in the industrial sector will also indirectly affect the improvement of people’s welfare. This is due to the wheels of the economy that are constantly moving.
3. Establishing Equality with Overseas Brands
TKDN will also help establish equality between foreign brands and local brands. Products produced in the country can be equivalent to various products made by other countries.
4. Creating a Good Supply-Chain
Another benefit of this TKDN certificate is that it can create a good supply chain. Vendors will be encouraged to open factories in Indonesia, and they will also be encouraged to supply assembly manufacturers in large quantities.
5. Strengthening Indonesia in the Southeast Asian Market
TKDN will help strengthen Indonesia as a production base in the Southeast Asian market region. Of course, this can be achieved if the component ecosystem runs smoothly and well.
TKDN Minimum Value for Each Sector
Of course, the awarding of TKDN certificates is carried out for industrial companies in various sectors. The following is a minimum list of TKDN that applies to each industrial sector in the country:
- Medical devices >60%
- National Electricity >40%
- Power generation >30-70%
- Transmission network >56-76%
- Substation >17-65%
- Oil and gas equipment >25-40%
- Oil and gas equipment >25-40%
- Agricultural machinery >43%
In calculating the TKDN value, three components will be involved. Here are the three components in question:
- Domestic Components in Goods
- Domestic Components in Services
- Domestic Components in the Combined Goods and Services
TKDN certification has an essential function for industrial companies and contributes to economic development in the country. This certification step can be more easily carried out with a trusted service.
Sucofindo is the right choice with a trusted certification team. which will prove the quality according to national and international regulations.
For more information about certification services. You can read our article here. If you and your company need further information regarding our services, contact and consult about it here.