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Understanding TKDN: A Comprehensive Guide to Indonesia's Local Content Requirement
Tingkat Komponen Dalam Negeri (“TKDN”) or the Domestic Component Level, is a regulatory framework established by the Indonesian Government to promote the use of local components in the production of goods and services. This initiative is part of Indonesia’s commitment to strengthening national industries and reducing dependency on imports, making TKDN a crucial policy tool in the country’s economic and industrial development strategies. For businesses in key sectors such as manufacturing, oil and gas, telecommunications, and infrastructure, compliance with TKDN is not just a regulatory obligation but also a strategic advance that enhances competitiveness within Indonesian market.
