Revamping Indonesia’s TKDN Rules: What MOI Reg. 35/2025 Means for Industry

Indonesia has introduced a major overhaul of its Domestic Component Level (Tingkat Komponen Dalam Negeri or “TKDN”) framework with the issuance of Minister of Industry Regulation No. 35 of 2025 (“MOI Reg. 35/2025”). This long-anticipated regulation replaces the decade-old MOI Reg. 16/2011 and forms part of the government’s wider push to modernize Indonesia’s industrial policy, promote local content and enhance competitiveness.

The new regulation consolidates and simplifies previous TKDN and Company Benefit Weight (“BMP”) rules, while expanding incentives and introducing new mechanisms to support compliance and efficiency. It also brings clarity to the scope of TKDN obligations and strengthens the verification and certification framework.

SSEK discusses the key changes under MOI Reg. 35/2025 and their potential implications for industry players and stakeholders engaged in procurement of goods and/or services

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