Second Amendment Introduces KBLI 2020 Transitional Arrangement for TKDN Application

The Director General of Agro Industry of the Ministry of Industry (“Director General”) has issued Regulation of the Director General of Agro Industry of the Ministry of Industry No. 4 of 2026 on the Second Amendment (“Amendment”) to Regulation of the Director General of Agro Industry No. 5 of 2025 on the Detailed Main Components of Goods in the Agro Industry Sector for the Calculation of the Domestic Component Level (“Regulation 5/2025”). The Amendment was issued following an evaluation of the existing framework governing the detailed main components of agro-industry products used in Domestic Component Level (Tingkat Komponen Dalam Negeri – “TKDN”) calculations; it seeks to ensure that the classifications and component lists used for TKDN calculations reflect current industry developments.[1] The Amendment replaces the Appendix of Regulation 5/2025 with a new Appendix under the Amendment, which now forms an integral part of the Amendment and serves as the applicable reference for TKDN calculations.[2]