1.      TKDN certification is a local content certification system promoted by the Indonesian government, which aims to evaluate the proportion of local raw materials, production processes, labor and other factors in products or services.

2.      The Indonesian government requires enterprises to complete localization rate certification and obtain the corresponding certificate for relevant products (such as mobile phones, computers, tablets and TVs) to participate in government projects of state-owned enterprises (BUMN) and regional enterprises (BUMD), and the localization rate of the products must be maintained at 40% or above.

3.      In Indonesia, localization rate certification only applies to factory entities. Trade importers and local distributors cannot apply for localization rate certification.

4.      To calculate the localization rate, enterprises need to provide relevant production data, including but not limited to the following aspects:

1. Raw materials

2. Labor

3. Production equipment

4. Factory operating costs (salary, rent, utilities, etc.)

5. R&D investment (if necessary)

5.      When applying for localization rate certification, the auditor will go to the factory to verify the location and production, and the factory manager must introduce the relevant production process.

6.      The localization rate certificate is issued by the Ministry of Industry and is valid for 3 years. It must be re-applied after expiration.