There are various things that industrial companies need to do, one of which is TKDN verification. To make the verification process easier, it turns out the government has also provided facilities that can be utilized optimally.
Actually, what is meant by this verification? Read the following explanation completely, then find out how to get it, calculation techniques and the conditions that need to be met to carry out this verification.
Explanation of TKDN Verification
TKDN is a term that may often be heard in the world of business or production. It is an abbreviation of Domestic Capability Level, which means the presentation or value of production components made domestically.
In this case, it can be a product in the form of goods, services, or a combination of goods and services. Apart from that, TKDN also includes costs for offering transportation for each product or service.
TKDN can also be a factor that can determine which product is more competent and superior. Therefore, TKDN verification is an important thing that has various benefits.
By being considered competent or superior, a product can become a winner in procurement of goods in various certain agencies.
TKDN Verification Rules Have Been Simplified by the Government
Currently, the government is aggressively encouraging increased use of domestic products, so various strategic steps are being taken.
This can be a trigger for industry players to be more productive and have high competitiveness. The next impact that is expected is to increase national economic growth and domestic products to be more competitive with foreign products.
In supporting this strategic step, the government has also made it easier and provided facilities to carry out TKDN verification and certification. Apart from that, the process is also accelerated, making it easier for various business fields to carry out verification.
One of the things that is done is to issue regulations related to verification in the Minister of Industry Regulation, more precisely in Number 43 of 2022. This regulation also explains the verification procedures that need to be carried out.
Furthermore, in the Job Creation Law, it has also been explicitly explained that regional and central governments are required to allocate at least 40 percent of their spending needs to cooperatives and MSMEs.
That way, domestic production can be supported more directly by the government, so that it can provide higher profits. TKDN certification can also have an influence in this case, including in the selection of tenders carried out by government agencies.
How to Get TKDN Verification
There are steps that need to be taken by the industry to obtain this verification, namely as follows:
1. Submit an Independent Calculation
To obtain TKDN verification and certificate, the first step that needs to be taken by industry is to carry out independent calculations for self assessment.
Naturally,TKDN calculation This relates to the value of the TKDN contained in the product, both in the form of goods and services.
2. Prepare Related Documents
Next, you need to prepare several documents needed to carry out the verification process. These documents include company registration certificates, company establishment deeds, production results reports in the last one year, and so on.
3. Verify Independent Calculation Results
The results of independent calculations that have previously been carried out will then be verified further. This verification is carried out by an Independent Verification Institution, in accordance with the appointment of the ministry, one of which is through Sucofindo.
Related documents that have previously been prepared in full also need to be verified by officers.
4. Prepare the necessary costs
There are costs required to carry out this verification and certification. These costs will depend on the type of product from the industry applying.
TKDN Calculation Techniques
For various companies that are required to have a TKDN value of a certain number, it is a good idea to first understand the technicalities of calculating it. In simple terms, this assessment can be based on the type of product offered, then added to the Company’s Benefit Weight value.
1. Evaluation of Goods and Services
There are three types of domestic components that will be calculated in this case, namely goods, services, and a combination of these two types of components.
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Domestic Components, for Services
First, there is the type of service used in the production system. This concerns the use of labor, experts, and various work tools used in the process. Work tools here include various supporting tools or facilities as well as software.
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Domestic components, for goods
Next, there are components of goods which involve raw materials, fabrication, design, assembly, engineering, and final completion of the product.
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Domestic components, for a combination of goods and services
Finally, there is a combination of goods and services. In other words, this concerns all the aspects discussed previously, as well as various combined aspects of these two things.
2. Assessment of the Weight of Company Benefits
The assessment also does not forget about the Company’s Benefit Weight or what is abbreviated as BMP. This is an award aimed at companies that have decided to invest in Indonesia.
In other words, they have also participated in helping to empower Small Businesses and Micro Businesses, as well as various cooperatives through partnership programs. Apart from that, they have also helped in environmental and work safety, health maintenance, and environmental empowerment.
The added value related to BMP has a significant impact on the TKDN assessment results. Therefore, it is important for companies to empower MSMEs, improve CSR and similar activities.
3. Calculation Formulation
Please note that TKDN in the form of goods can be calculated by comparing the finished price of the item, then subtracting the price of the foreign component of the item.
It can be said that the price of finished goods is the total of production costs that have been incurred, which may include:
- Costs for materials or materials directly
- Required labor costs
- Indirect costs or what are also called factory overhead
However, this financing does not include indirect costs from the company or company overhead, profits earned, and expenditure taxes that need to be paid.
Requirements for TKDN Verification
Furthermore, there are also various requirements for companies that will apply for TKDN certification. The following are the verification requirements that need to be considered and fulfilled completely and precisely:
- Have a business establishment deed
- Have a clear production organizational structure
- Purchase of raw materials
- Make a list of tools or equipment used for the production process
- Have production working drawings
- Submit production results reports within the last one year
- Has ISO 9001 certification
- Production area plan
- Production process
- Production workflow and product catalogs or brochures
These are various explanations regarding TKDN verification and certification that companies should know. By carrying out this verification, there are various benefits that can be obtained, one of which is increasing the competitiveness of the products offered.
To be able to do TKDN certification and verification, one of the institutions appointed by the government, namely Sucofindo. For further explanations about certification services, you can view them directly via this page.
