New TKDN Rate for Indonesias Solar Module Industry: Factory Overhead Included

In 2017, the Minister of Industry (“Minister”) introduced Regulation No. 4/M-IND/PER/2/2017 (“Regulation 4/2017”) on Provisions and Procedures for Assessments of the Domestic Component Levels (Tingkat Komponen Dalam Negeri – “TKDN”) of solar power plants (Pembangkit Listrik Tenaga Surya – “PLTS”). As its title suggests, Regulation 4/2017 broadly outlines the applicable requirements, procedures and basis for calculating TKDN for PLTS. It should be noted that the aforementioned Regulation 4/2017 was summarized in the following edition of Indonesian Legal Brief (“ILB”): “Guidelines for the Assessment of Domestic Component Levels Within Solar Power Plants”.

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