Minister of Industry: Domestic Products Must Be Competitive and High Quality

JAKARTA,  || JACKTVNEWS .co.id 

 The Ministry of Industry continues to strengthen Indonesia’s national industrial ecosystem by promoting the use of domestic products. The policy is aimed not only at creating markets for locally manufactured goods, but also at strengthening production capacity, supply chains, investment, and employment.26/9/2026 

Minister of Industry Agus Gumiwang Kartasasmita said Indonesia’s large domestic market is an important asset for expanding the market share of national industries while encouraging the development of increasingly competitive products.

“Utilizing domestic products is part of our efforts to build a stronger industrial ecosystem. When national industrial products gain wider market access, production capacity can be optimized, creating further impacts on investment, employment, and the strengthening of domestic supply chains,” Agus said in Jakarta on Saturday (September 26).

According to the minister, every Rp1 spent on domestic products can generate an economic impact of Rp2.2 on the national economy.

The domestic market also remains a major opportunity for Indonesia’s manufacturing sector. Around 78.39 percent of national manufactured products are currently intended for the domestic market, while 21.61 percent are exported.

With Indonesia’s large population and continued consumer demand, the domestic market still offers significant room for national industries to expand their presence.

The government therefore encourages the use of domestic products in the procurement of goods and services, both within government institutions and other sectors.

Head of the Center for Increasing the Use of Domestic Products (P4DN), Kris Sasono Ngudi Wibowo, said the opportunity is supported by industrial capacity that can still be optimized. Non-oil and gas manufacturing utilization stood at 61.8 percent in 2025.

Meanwhile, household consumption in Indonesia reached Rp12,834.8 trillion throughout January-December 2025, with a population of 284.44 million.

“This large consumer base provides room for national manufacturing products to expand their domestic market,” Kris said.

To strengthen domestic industries, the government continues to implement the Domestic Component Level (TKDN) policy.

As of September 2, 2026, more than 57,000 products had received TKDN certification from more than 5,600 industrial companies. These products form part of Indonesia’s industrial base that can be utilized in the procurement of goods and services while expanding market access for domestically manufactured products.

In the pharmaceutical and healthcare sector, Bio Farma Group is among the companies implementing the TKDN policy. The company has 29 TKDN and Corporate Benefit Weight (BMP) certificates covering vaccines, enoxaparin, diagnostic kits, and other products.

The certified products have TKDN levels ranging from 44.28 percent to 95.03 percent, while the Corporate Benefit Weight reaches a maximum of 15 percent.

“Strengthening domestic production in the pharmaceutical industry is not only about how much can be produced domestically, but also about building capabilities from upstream to downstream. Through technological mastery, increased TKDN, and the implementation of quality and halal standards, the products can meet national needs while remaining competitive in global markets,” said PT Bio Farma President Director Evi Sylvia.

Adolf Hutabarat
JACKTV.NEWS