TKDN & RKAB 2026: Is Your Mining Equipment Supply Chain Ready?
By PT Transcon Indonesia (TCI)
For years, Chinese-manufactured heavy equipment has been a backbone of Indonesia’s mining industry. Competitive quality, efficient pricing, and reliable delivery made it a natural choice.
But one critical factor has changed: how Indonesia regulates procurement.
Since late 2025 and into 2026, three major regulations have come into force simultaneously, directly impacting every mining equipment supply chain entering Indonesia. For manufacturers’ representatives and logistics managers serving this sector, understanding these regulations is no longer optional — it is operationally mandatory.
Three Key Regulations You Must Understand
1. Ministry of Industry Regulation No. 35/2025
Effective 12 December 2025
Indonesia has overhauled its Domestic Component Level (TKDN) certification system, replacing a 14-year-old framework.
Mining procurement now requires a minimum 25% local content, with combined TKDN and Company Benefit Weight (BMP) reaching up to 40%.
The calculation method has shifted from a cost-based formula to a more structured and weighted evaluation system.
The implication is straightforward: Indonesian mining companies cannot procure imported equipment without complete TKDN documentation from suppliers. Without it, the product is automatically disqualified from procurement processes.
2. Ministry of Energy Regulation No. 17/2025
Effective 2025
Mining companies’ Work Plan and Budget (RKAB) approval has shifted from a three-year cycle to an annual cycle.
This means clients can no longer commit to long-term equipment purchases without annual approval from the Ministry of Energy.
Without approved RKAB, no procurement commitment can proceed.
3. Mining Law No. 3/2020 Article 106
Stricter Enforcement in 2026
Mining license holders (IUP) are legally obligated to prioritize domestic goods and services throughout operations.
Enforcement in 2026 is significantly stricter. Violations may result in administrative sanctions or suspension of mining licenses — a risk your clients will not tolerate.
Strategic Actions Required
These regulations are not barriers to business. They define a new compliance standard that, if properly prepared, strengthens your position as a reliable and compliant partner.
Key steps include:
- Accelerating TKDN certification under Regulation 35/2025. The certificate is valid for five years — a one-time investment for long-term protection.
- Aligning shipment schedules with clients’ annual RKAB approval cycles.
- Preparing technical documentation proving the absence of equivalent domestic substitutes.
- Utilizing bonded logistics facilities to manage spare parts inventory efficiently while maintaining flexibility within annual budget cycles.
TCI Is Ready to Support You
PT Transcon Indonesia (TCI) has extensive experience in mining and heavy industry logistics and customs management. We understand that speed and regulatory compliance must work together.
If you would like to discuss how these regulatory changes affect your supply chain specifically, our team is ready to assist.
Contact TCI today — and ensure your supply chain is not only fast, but regulation-ready.