Official Government Vehicles Now Must Have 25 Percent Local Content

In more detail, here is the wording of the regulation regarding the 25 percent TKDN in Article 66, specifically paragraphs 1 and 2, which was recently signed by President Prabowo Subianto.

(1) Ministries/Agencies/Regional Apparatus/Other Institutions are required to use Domestic Products, including national design and engineering.
(2) The obligation to use Domestic Products as referred to in paragraph (1) for industrial Products is carried out with the following provisions:

a. use Domestic Products that have a domestic component level value of at least 25% (twenty-five percent) if there are Domestic Products that have a combined value of domestic component level plus company benefit weight of at least 40% (forty percent);

Photo : Toyota Astra Motor

b. in the event that Domestic Products with a combined value of domestic component level plus company benefit weight of at least 40% (forty percent) as referred to in letter a are not available or the volume is insufficient for the needs, then use Domestic Products that have a component level value

of at least 25% (twenty-five percent); in the event that Domestic Products as referred to in letters a and b are not available or the volume is insufficient for the needs, then use Domestic Products that have a domestic component level value of less than 25% (twenty-five percent); or

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d. in the event that Domestic Products as referred to in letters a, b, and c are not available or the volume is insufficient for the needs, then use Domestic Products that are already listed in the national industrial information system.