Government Issues New Presidential Regulation to Protect Automotive Industry

KatadataOTO – The pressure faced by the automotive industry recently has received attention from the government. Several strategies have been prepared to improve the situation.

One of them is by revising the Domestic Component Level (TKDN) regulations. In the new policy, the government will make it easier for government agencies to purchase environmentally friendly vehicles for operational needs.

The new regulation will be stipulated in Presidential Regulation Number 46 of 2025, which was signed by the president last week.

“This is a follow-up presidential regulation that strengthens and reaffirms the obligation of the central and regional governments to use domestic products. The regulation will certainly benefit industry players,” explained Agus Gumiwang Kartasasmita, Minister of Industry (06/05).

Photo : Indomobil

He also explained that in article 66 paragraph 1, it is stated that Ministries / Institutions / Regional Apparatus / other Institutions are required to use domestic products, including national design and engineering.

Meanwhile, paragraph 2 states that 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 TKDN value of at least 25 percent if there are domestic products that have a combined TKDN value plus the Company Benefit Weight (BMP) value of at least 40 percent.

(b) in the event that domestic products with a combined TKDN value plus BMP value of at least 40 percent are not available or the volume is insufficient to meet the needs, then domestic products with a TKDN value of at least 25 percent shall be used.

(c) in the event that the domestic products as referred to in letters (a) and (b) are not available or the volume is insufficient to meet the needs, then domestic products with a TKDN value of less than 25 percent shall be used.

“Paragraph 2b is new and proves that the government is now more operative, innovative, and progressive in the industrial environment. We are truly striving to protect the domestic industry,” he then emphasized.

Photo : TAM

He also emphasized that this regulation, which aims to protect the domestic industry, has been in development for a long time.

“So this is not because of the import tariff policy implemented by the United States government, but it has indeed been discussed for a long time,” he stressed.