TKDN Calculation for Solar Panels helps manufacturers understand how Indonesia assesses domestic content in solar modules. For manufacturers, assemblers, and equipment suppliers, this knowledge helps them prepare for TKDN verification.
Indonesia has introduced specific rules for measuring domestic content in industrial products. However, not every product follows the same calculation method. Solar modules have their own calculation framework, while the certification process follows the applicable general regulations.
This guide explains the main calculation factors, their official weights, and the documents manufacturers should prepare. It also covers the steps involved in preparing for verification.
Understanding TKDN Requirements for Solar Panels
TKDN stands for Tingkat Komponen Dalam Negeri, or Domestic Component Level. It measures domestic content under Indonesia’s applicable regulations.
The legal framework includes Law No. 3 of 2014 on Industry and Government Regulation No. 29 of 2018 on Industrial Empowerment. In addition, the Ministry of Industry (Kemenperin) issued Regulation No. 34 of 2024 to govern TKDN calculations for solar modules.
Meanwhile, Regulation No. 35 of 2025 establishes a broader framework for TKDN and Company Benefit Weight (BMP) certification. Therefore, manufacturers should understand how the product calculation rules relate to the certification requirements.
These two aspects serve different purposes. The first determines how manufacturers assess domestic content. The second governs the applicable certification process.
Manufacturers should check both regulations before preparing an application. They should also review any relevant transitional provisions and current administrative requirements.
Official references:
TKDN Calculation for Solar Panels: Official Weighting
Under Regulation No. 34 of 2024, solar module calculations cover three main production factors. Each factor has a specific weight in the overall assessment.
| Production factor | Weight |
|---|---|
| Direct materials | 91% |
| Direct labor | 5% |
| Factory overhead | 4% |
| Total | 100% |
These weights apply to the solar module calculation framework. However, they do not represent the automatic TKDN value of a finished product.
Instead, manufacturers must assess the relevant domestic content and apply the prescribed calculation method. The regulation also assigns specific weights to individual material components.
Consequently, manufacturers should not calculate the final value by simply dividing local spending by total production costs. That approach does not capture all the requirements of the specific solar module methodology.
1. Direct Materials
Direct materials account for 91% of the overall weighting. This category covers the materials and components identified in the applicable regulation.
Examples include:
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Solar cells and their upstream production stages.
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Tempered glass.
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Photovoltaic junction boxes.
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Backsheets or bifacial materials.
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Frames.
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EVA film.
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Photovoltaic ribbon.
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Solar silicon.
The regulation also distinguishes between stages in solar cell production. These stages include silica procurement, silicon production, ingot manufacturing, brick manufacturing, wafer production, blue cell production, and cell printing.
Each relevant component has its own prescribed weight. For example, tempered glass has a weight of 12%, while frames have a weight of 9%. Photovoltaic junction boxes carry a weight of 8%.
However, these figures do not automatically become the product’s TKDN percentage. Manufacturers must assess the domestic content of each relevant component according to the applicable criteria.
For this reason, companies should keep clear records of component origins and manufacturing activities. These records help support the calculation during verification.
2. Direct Labor
Direct labor accounts for 5% of the overall weighting. It relates to labor involved in the relevant manufacturing activities.
Manufacturers should maintain employment and production records to support their assessment. For example, they can organize payroll records, employee assignments, and production reports.
These documents help connect labor costs to the manufacturing process. However, companies must still follow the applicable rules when assessing domestic content.
A consistent recordkeeping process also helps manufacturers identify missing information before submitting an application.
3. Factory Overhead
Factory overhead accounts for 4% of the overall weighting. This category covers the relevant indirect factory costs considered under the regulation.
Manufacturers should organize supporting accounting and production records. Depending on the applicable requirements, these records may cover utilities, maintenance, equipment, and other relevant factory expenses.
However, companies should not automatically classify every expense incurred in Indonesia as domestic content. The prescribed calculation method determines how the relevant costs contribute to the assessment.
How to Calculate TKDN Value for Solar Modules
Manufacturers must apply the weighted calculation method established by the applicable regulation. In practice, they need to assess the relevant production factors and material components before applying their prescribed weights.
The general concept can be expressed as follows:
TKDN = Sum of the weighted domestic-content contributions under the applicable calculation method.
This expression explains the principle behind the assessment. It does not replace the detailed formula and criteria in Regulation No. 34 of 2024 and its appendix.
First, manufacturers identify the relevant production factors and components. Next, they assess domestic content according to the prescribed criteria. Finally, they apply the relevant weights to determine the calculated contribution.
The direct materials category carries 91% of the overall weighting. Direct labor carries 5%, while factory overhead carries 4%.
However, the weight of a component is not the same as its actual domestic-content contribution. The final result depends on the applicable assessment and supporting evidence.
Why a Simple Cost Formula Is Not Enough
A simple ratio of local expenditure to total production expenditure can help with internal financial analysis. Nevertheless, manufacturers should not present that ratio as the official solar module TKDN formula.
The specific framework uses prescribed weights for production factors and material components. Therefore, a calculation based only on local purchasing costs may produce a different result from the official assessment.
Manufacturers should use the official calculation format when preparing their documentation. They should also distinguish preliminary estimates from values established through the applicable verification process.
Documents to Prepare for TKDN Verification
Good documentation helps manufacturers support their calculations. Before applying, companies should organize records that match their product and the applicable certification requirements.
Bill of Materials and Component Records
Start with a Bill of Materials (BOM). This document should identify the relevant components, quantities, suppliers, and supporting information.
Next, check the BOM against the product specifications and production records. Companies should also maintain appropriate evidence of component origin and procurement.
These steps help reduce inconsistencies between the declared components and the supporting documents.
Production and Cost Records
Manufacturers should organize records for direct labor, factory overhead, and relevant production activities.
For example, supporting records may include payroll information, accounting documents, production reports, equipment records, and factory information.
However, the required documents depend on the applicable assessment. Therefore, companies should confirm the current requirements before submitting their applications.
Product and Company Information
Companies should also prepare relevant product specifications, identification details, company information, and manufacturing facility records.
Before submission, compare the information across all documents. Inconsistent product details or missing supporting evidence can create avoidable questions during verification.
Steps to Prepare for TKDN Certification
A clear preparation process helps manufacturers identify documentation gaps early. The following steps provide a practical starting point.
Step 1: Confirm the Applicable Regulations
First, identify the rules that govern the product’s TKDN calculation. For solar modules, review Regulation No. 34 of 2024 alongside the general certification framework and relevant transitional provisions.
Step 2: Prepare the Product BOM
Next, list the relevant components, production stages, supplier information, and supporting documents. Make sure these records match the product under assessment.
Step 3: Apply the Prescribed Calculation Method
Use the applicable calculation format and component weights. Then, review the supporting evidence for each relevant factor.
At this stage, distinguish an internal estimate from an officially verified result. This distinction helps prevent inaccurate claims about the product’s TKDN value.
Step 4: Confirm the Application Procedure
Check the current application requirements and the official submission channel. Where applicable, confirm the SIINas workflow with Kemenperin or the relevant verification body.
Because administrative procedures can change, manufacturers should verify the current instructions before submitting their documents.
Step 5: Prepare for Verification
Organize the documents and manufacturing information required for the assessment. In addition, make sure the relevant personnel can explain the production process and supporting records.
The verification body will follow the requirements applicable to the specific application.
Step 6: Review the Official Result
After the assessment, review the findings and address any outstanding requirements through the applicable process. The final certification outcome depends on the relevant regulations and formal assessment.
Practical Ways to Improve TKDN Readiness
Manufacturers can improve their preparation by reviewing their supply chains and production records before applying.
For example, companies can check the origin and documentation of frames, tempered glass, junction boxes, and other relevant components. They can also review the available evidence for the solar cell production stages.
This review helps manufacturers identify missing information before the formal assessment. It also provides a clearer picture of their current documentation readiness.
However, local sourcing alone does not guarantee a specific TKDN value. Manufacturers must assess domestic content according to the applicable criteria and supporting evidence.
A consistent BOM, traceable supplier records, and organized manufacturing documents provide a stronger foundation for verification.
Common Mistakes in TKDN Calculation
Manufacturers should watch for several common mistakes when preparing an initial assessment.
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Using an oversimplified formula. A general local-cost ratio does not replace the prescribed solar module calculation method.
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Confusing component weights with TKDN values. A component’s assigned weight does not automatically become its domestic-content percentage.
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Assuming local procurement guarantees domestic content. Manufacturers must assess component origin and qualifying domestic content under the applicable rules.
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Submitting incomplete documents. Missing evidence can make the assessment more difficult to support.
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Ignoring regulatory updates. Companies should review the applicable rules and certification procedures before applying.
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Treating an estimate as an official result. An internal calculation does not replace the required verification process.
By addressing these issues early, manufacturers can prepare more consistent records and avoid unsupported claims about their products.
Frequently Asked Questions
What does TKDN mean for solar panels?
TKDN measures domestic content under Indonesia’s applicable regulations. For solar modules, Regulation No. 34 of 2024 establishes a specific calculation framework.
What are the main weights in solar module TKDN calculation?
The regulation assigns 91% to direct materials, 5% to direct labor, and 4% to factory overhead. The detailed assessment also considers the relevant component criteria and prescribed weights.
Can manufacturers calculate TKDN independently?
Manufacturers can prepare an internal assessment using the applicable calculation method and supporting records. However, they should not present an internal estimate as an officially verified value.
Does buying components from Indonesian suppliers automatically increase TKDN?
Not automatically. The applicable criteria and supporting evidence determine each component’s qualifying domestic-content contribution.
Does every renewable energy product use the same TKDN calculation?
No. Manufacturers should confirm the rules for their specific product category. The solar module framework should not automatically be applied to other renewable energy equipment.
How can Cerapproval help manufacturers?
Manufacturers can contact Cerapproval to discuss documentation preparation, preliminary assessments, and support related to the applicable verification process. Companies should confirm the available services and their scope directly with Cerapproval.
Streamline Your TKDN Certification Preparation with Cerapproval
Preparing for TKDN verification requires more than calculating a percentage. Manufacturers also need accurate component information, consistent production records, and a clear understanding of the applicable regulations.
Cerapproval can help your team discuss documentation needs, review preparation steps, and identify potential gaps before formal verification. The scope of support will depend on the product and applicable requirements.
Contact Cerapproval today for a free consultation about your TKDN verification needs.
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Get a free consultation about your local content compliance requirements.
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Request a preliminary review of your solar product documentation.
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Schedule a technical meeting with Cerapproval experts.
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