Minister of Industry of The Republic of Indonesia MINISTER ... · PDF fileb. that given the...

Minister of Industry of The Republic of Indonesia

MINISTER OF INDUSTRY REGULATION REPUBLIC OF INDONESIA NUMBER

65/M-IND/PER/7/2016

ON

PROVISIONS AND PROCEDURES OF VALUE MEASUREMENT OF DOMESTIC

COMPONENT LEVEL CELLULAR TELEPHONE, HANDHELD COMPUTER I

(HANDHELD) AND TABLET COMPUTER PRODUCTS

BY THE GRACE OF GOD THE ALMIGHTY;

MINISTER OF INDUSTRY OF THE REPUBLIC OF INDONESIA,

Considering : a. that, within the framework of improving

the competitiveness of Domestic

Cellular Telephone, Handheld Computer

(handheld) and Tablet Computer Industry

aligned with the characteristics of the

industry, it is necessary to regulate

the provisions and procedures of

measuring the value of Domestic

Component Level for the products

concerned;

b. that given the consideration in letter

a, it is necessary to promulgate

Minister of Industry Regulation on The

Provisions and Procedures of value

measurement of Domestic Component Level


(Handheld) and Tablet Computer products;

Taking into view : 1. Law Number 3 of 2014 on Industry

(Supplement Number 5492 to Official

Gazette of the Republic of Indonesia

Number 4 of 2014);

2. President Regulation Number 7 of 2015 on

State Ministry Organization (Official


Number 8 of 2015);

3. President Regulation Number 29 of 2015

on Ministry of Industry (Official


Number 54 of 2015);

4. President's Decision Number 121/P of

2014 on Formation of Ministry and

Appointment of Minister in the Working

Cabinet for the Period 2014 - 2019

amended by President's Decision Number

79/P of 2015;

5. Minister of Industry Regulation Number

107/M-IND/ PER/11/2015 on Organization

and Administration of Ministry of

Industry (Official Gazette of the

Republic of Indonesia of 2015 Number

1806);

IT IS HEREBY DECIDED:

TO STIPULATE : MINISTER OF INDUSTRY REGULATION ON THE

PROVISIONS AND PROCEDURES OF VALUE

MEASUREMENT OF DOMESTIC COMPONENT LEVEL

CELLULAR TELEPHONE, HANDHELD COMPUTER

(HANDHELD) AND TABLET COMPUTER PRODUCTS.

CHAPTER I

GENERAL PROVISIONS

Article 1

In this Ministerial Regulation:

1. Domestic Component Level, hereinafter

referred to as DCL, means the amount of

domestic component in Cellular Telephone,

Handheld Computer (handheld) or Tablet

Computer products.

2. Cellular Telephone shall mean the set

of devices used in the far distance

communication on cellular network basis

or using other wireless network,

including smartphone and except

satellite telephone.

3. Handheld Computer shall mean a handled

automatic digital data processor

including the personal digital

assistant (PDA) and palmtop.

4. Tablet Computer shall mean a portable

automatic digital data processor using

flat touch screen as monitor with the

input wares in terms of stylus, digital

pen, or finger top other than using

keyboard or mouse, whether those

functioning as communication devices or

not.

5. Applicant shall mean the business actor

submitting the application for

assessment to Local Content.

6. Application shall mean the product

constituting the set of procedure in

terms of program or instruction that

will perform an instruction.

7. License shall mean the permit issued by

the owner of intellectual proprietary

right (copy right, patent, mark,

industrial design and circuit layout

design) to the other party based on the

agreement on issue of right to use its

exclusive right provided with

protection within certain term and in

certain conditions.

8. Chipset shall mean a set of electronic

component of Cellular Telephone,

Handheld Computer, and Tablet Computer

products instrument, integrated in a

silicon chip (integrated circuit), in

which every component is in form of

microchip cooperating to each other in

performing various features.

9. Firmware shall mean the software

installed in the hardware.

10. Industrial Design means the creation of

shape, configuration or composition of

lines or colors or combination thereof

in two-dimension or three-dimension

making aesthetic impression and which

can be embodied in two or three

dimension patterns and is applicable to

manufacture products or goods.

11. Circuit Layout Design means the creation

of three-dimension layout design of

various elements, where at least one of

the elements is an active element and

part or all of interconnections in an

integrated circuit and three-dimension

layout are intended to manufacture

integrated circuit.

12. Director General means the Director

General of Metal, Machinery,

Transportation Means and Electronic

Industry under the Ministry of

Industry.

13. Minister means minister in charge of

governmental affairs in Industry.

Article 2

The scope of provisions and procedures of

DLC value measurement includes:

a. Provisions of DCL Assessment;

b. DCL Assessment Procedure;

c. surveyor; and

d. Supervision.

CHAPTER II

PROVISIONS OF DCL ASSESSMENT

Part One

General

Article 3

(1) DCL Assessment for Cellular Telephone,

Handheld Computer [Handheld) and Tablet

Computer products is subject to the

provisions set forth in this

Ministerial Regulation.

(2) DCL Assessment referred to in paragraph

(1) shall be carried out for each type

of Cellular Telephone, Handheld

Computer (Handheld) and Tablet Computer

products.

(3) DCL Assessment referred to in paragraph

(2) shall be carried out on the

following aspects:

a. manufacture;

b. development; and

c. Application.

Part Two

DLC Value Measurement

First Paragraph

General

Article 4

DCL Assessment shall be carried out with

the following weightings:

a. Manufacture Aspect weighted at 70%

(seventy percent) of Product DCL

Assessment;

b. development aspects weighted at 20%

(twenty percent) of Product DCL

Assessment; and

c. application aspects weighted at 10% (ten

percent) of Product DCL Assessment.

Second Paragraph

DCL Assessment for Manufacture Aspect

Article 5

(1) DCL Assessment for Manufacture Aspect

referred to in Article 4 letter a shall

be carried out with the following

weightings:

a. material is weighted at 95% (ninety

five percent) of material aspect

assessment;

b. labor is weighted at 2% (two percent)

of material aspect assessment; and

c. production machines is weighted at

3% (three percent) of material

aspect assessment.

(2) DCL measurement for materials referred

to in paragraph (1) letter a hall be

carried out on the following weighting

as detailed below:

No Description Weight

1. Touch Display Module (TDM) Modules

Component

12,00%

Bonding (Full Lamination) 4,00%

2 Camera

Front Camera 5,00%

Rear Camera 10,00%

3 Printed Circuit Board (PCB)

Main and Sub Printed Circuit Boards

(PCB) Components

13,00%

Printed Circuit Board Assembly (Surface-

Mount Technology/SMT)

8,00%

4 Enclosure Casing Assembly Set 10,00%

5 Flexible connector (FPC) 4,00%

6 Baterai 8,00%

7 Vibration motor 3,00%

8 Speaker and Earpiece 3,00%

10 Interconnect Electrical Wire Assembly 3,00%

11 Accessories

Earphone 4,00%

Charger 3,00%

Cable 3,00%

12 Packing (Packing) 3,00%

(3) DCL measurement for labor referred to

in paragraph (1) letter b shall be

carried out on the weightings as

detailed below:


1 Assembling Labor (Assembling) 0,50%

2 Testing Labor (Testing) 1,00%

3 Packing Labor (Packing) 0,50%

(4) DCL measurement for production machines

referred to in paragraph (1) letter c

shall be carried out on the weightings

detailed below:


1 Assembling Machine 1.00%

2 Testing Machine 2.00%

Third Paragraph

DCL Assessment for Development aspects

Article 6

DCL Assessment for Development aspects

referred to in Article 4 letter b shall be

carried out with the following weightings:

a. License is weighted at 10% (ten percent)

of assessment on development aspects;

b. Firmware is weighted at 40% (forty

percent) of assessment on development

aspects;

c. Industrial Design is weighted at 20%

(twenty percent) of assessment on

development aspects; and

d. Integrated circuit layout design is

weighted at 30% (thirty percent) of

assessment on development aspects.

Article 7

(1) DCL Assessment for license referred to

in Article 6 letter a shall be carried

out on Ownership of License and

Intellectual Property Rights for

development using software/ hardware

development kit or reference design

released by the vendor of Main chipset.

(2) Ownership of intellectual property

rights referred to in paragraph (1)

shall be evidenced by documents of

Ownership of intellectual property rights.

(3) License Ownership referred to in

paragraph (1) shall be evidenced by

license agreement, including:

a. license agreement between applicant

and owner or any company within the

group of intellectual property

rights owner; and

b. license agreement between Applicant

and other party entering into

shared license with intellectual

property rights owner (Shared

License).

Article 8

(1) Ownership of intellectual property

rights referred to in Article 7

paragraph (2) is given DLC value 100%

(one hundred percent) of DCL Assessment

Weight for License.

(2) License Ownership under the agreement

referred to in Article 7 paragraph (3)

letter a is given DLC value 100% (one

hundred percent) of DCL Assessment

Weight for License,

(3) License Ownership under the agreement


letter b is given DLC value 50% (fifty

percent) of DCL Assessment Weight for

License.

(4) Development using software/ hardware

development kit or reference design

without Ownership of License and

Intellectual Property Rights is given

DLC value 0% (nil percent) of DCL

Assessment Weight for License.

Article 9

DCL Assessment for Firmware referred to in

Article 6 letter b shall be carried out

with the following weightings:

a. development of operating system is

weighted at 20% (twenty percent) of

assessment on development aspects;

b. development man machine interface is

weighted at 10% (ten percent) of


c. combination of firmware with operating

system (injection software) is weighted

at 5% (five percent) of assessment on


d. testing and debugging is weighted at 5%

(five percent) of assessment on

development aspects.

Article 10

(1) DCL Assessment for development of

operating system referred to in Article

9 letter a shall be carried out on

modification, integration, customization,

compiling source code and/or kernel.

(2) The integration, customization, driver

modification referred to in paragraph

(1) is given DLC value at maximum of

100% (one hundred percent) of DCL

Assessment Weight for Firmware.

(3) The activity performed through

compiling source code referred to in

paragraph (1) is given DLC value at

maximum of 50% (fifty percent) of DCL

Assessment Weight for Firmware.

(4) In case no development of operating

system referred to in paragraph (1) is

carried out, DLC value given is 0% (nil

percent) of DCL Assessment Weight for

Firmware.

Article 11

(1) DCL Assessment for development of man

machine interface referred to in

Article 9 letter b shall be carried out

on the development of boot splash,

animation, theme, style, launcher,

menu, quick menu setting, shutdown,

and/or other modifications on the man

machine interface.

(2) The development of at least 5 (five)

items referred to in paragraph (1) is

given DLC value at maximum of 100% (one


Weight for man machine interface.

(3) The development of 1 (one) to 4 (four)

items referred to in paragraph (1) is

given DLC value at maximum of 20%

(twenty percent) of DCL Assessment

Weight for man machine interface.

(4) In case no development of man machine

interface referred to in paragraph (1)

is carried out, DLC value given is 0%

(nil percent) of DCL Assessment Weight

for man machine interface.

Article 12

(1) DCL Assessment for combination of

firmware with operating system

(injection software) referred to in

Article 9 letter c shall be carried out

on integration of application into

operating system platform.

(2) Integration of application into

operating system platform referred to

in paragraph (1) is given DLC value at

maximum of 100% (one hundred percent)

of DCL Assessment Weight for

combination of firmware with operating

system (injection software).

(3) In case no activity is carried out in

the integration Application into


in paragraph (1), DLC value given is 0%

(nil percent) of DCL Assessment Weight

for combination of firmware with

operating system (injection software).

(4) Integration of application into


in paragraph (1) shall be carried out

by:

a. Applicant;

b. developer company appointed by

Applicant; or

c. developer company appointed by

Applicant using application developed

by third party (outsource).

Article 13

(1) DCL Assessment for testing and

debugging referred to in Article 9

letter d shall be carried out on

testing and debugging of Firmware used

on Cellular Telephone, Handheld

Computer (handheld) or Tablet Computer

products.

(2) Testing and debugging of firmware

(firmware) referred to in paragraph (1)

is given DLC value at maximum of 100%

(one hundred percent) of DCL Assessment

Weight for testing and debugging.

(3) In case no testing and debugging of

firmware (firmware) referred to in

paragraph (1) is carried out, DLC value

given is 0% (nil percent) of DCL

Assessment Weight for testing and

debugging.

Article 14

(1) DCL Assessment for Industrial Design

referred to in Article 6 letter c shall

be carried out on Product Design and

Mechanical Design of Cellular

Telephone, Handheld Computer (Handheld)

and Tablet Computer products.


referred to in paragraph (1) may be

carried out if the development of

application, 1 (one) expatriate labor

is assisted by a minimum of 3 three

domestic labors.

Article 15


referred to in Article 14 shall be

carried out on the following weightings:

a. Product Design is weighted at 10%

(ten percent) of assessment on


b. Mechanical Design is weighted at

10% (ten percent)of assessment on

development aspects.

(2) DCL Assessment for Product Design

referred to in paragraph (1) letter a

shall be carried out for outer casing

design of Cellular Telephone, Handheld

Computer (Handheld] and Tablet Computer

products.

(3) DCL Assessment for Mechanical Design

referred to in paragraph (1) letter b

shall be carried out for inner casing



products.

(4) DCL Assessment for Product Design


shall be carried out subject to the

following conditions:

a. outer casing design is given DLC

value 100% (one hundred percent) of

DCL Assessment for Product Design;

and

b. In case outer casing design is not

carried out, is given DLC value 0%

(nil percent) of DCL Assessment for

Product Design.

(5) DCL Assessment for Mechanical Design


shall be carried out subject to the


a. inner casing design is given DLC

value 100% (one hundred percent) of

DCL Assessment for Mechanical

Design; and

b. In case inner casing design is not

carried out, is given DLC value 0%

(nil percent) of DCL Assessment for

Mechanical Design.

Article 16

(1) DCL Assessment for Circuit Layout

Design referred to in Article 6 letter

d shall be carried out on:

a. schematic diagram;

b. circuit board layout design; and

c. testing and calibration of Printed

Circuit Board Assembly-Surface

Mount Technology (PCBA SMT) and

development of Jig Test.


schematic diagram referred to in

paragraph (1) letter a shall be carried

out for circuit diagram of Cellular


and Tablet Computer products.

(3) DCL Assessment for circuit board layout

design referred to in paragraph (1)

letter b shall be carried out for

Printed Circuit Board (PCB) layout



electronic circuit.


calibration of PCBA SMT and Jig Test

referred to in paragraph (1) letter c

shall be carried out for testing and

calibration of PCBA Cellular Telephone,

Handheld Computer (Handheld] and Tablet

Computer products.

Article 17

(1) DCL Assessment for Circuit Layout

Design referred to in Article 16 shall

be carried out on the following

weightings:

a. schematic diagram is weighted at

10% (ten percent) of assessment on

development aspects;

b. circuit board layout design is

weighted at 10% (ten percent) of


and

c. testing and calibration of Printed

Circuit Board Assembly-Surface

Mount Technology (PCBA SMT) and Jig

Test is weighted at 10% (ten

percent) of assessment on development

aspects.


schematic diagram referred to in

paragraph (1) letter a shall be carried

out subject to the following

conditions:

a. circuit diagram is given DLC value


Assessment for Circuit Layout

Design; and

b. In case circuit diagram is not

made, DLC value is 0% (nil percent)

of DCL Assessment for Circuit

Layout Design.

(3) DCL Assessment for circuit board layout

design referred to in paragraph (1)

letter b shall be carried out subject

to the following conditions:

a. designing of Printed Circuit Board

(PCB) layout is given DLC value


Assessment for Circuit Layout

Design; and

b. In case designing of Printed

Circuit Board (PCB) layout is not

carried out, DLC value is 0% (nil

percent) of DCL Assessment for

Circuit Layout Design.


calibration of PCB A SMT referred to in

paragraph (1) letter c shall be carried

out subject to the following conditions:

a. testing and calibration of PCBA,

DLC value is given 100% (one


for testing and calibration of PCB

A SMT; and

b. In case testing and calibration of

Product PCBA is not carried out,

DLC value is given 0% (nil percent)

of DCL Assessment for testing and

calibration of PCBA SMT.

Article 18

The filling form of DLC Value Measurement

for Development aspects shall be as stated

in Appendix I which forms inseparable part

of this Minister Regulation.

Fourth Paragraph

DCL Assessment for application aspects

Article 19

(1) DCL Assessment for application aspects

referred to in Article 4 letter c shall

be carried out on:

a. activity phase; and

b. measurement component.

(2) Activity Phase referred to in paragraph

(1) letter a consists of:

a. requirements;

b. architectural design;

c. programming;

d. application testing; and

e. application packing.

(3) Measurement component referred to in

paragraph (1) letter a consists of:

a. architectural design;

b. intellectual property rights;

c. labor;

d. certificate of competency; and

e. work equipment.

Article 20

The provisions of DCL Assessment for

application referred to in Article 19

shall be as stated in Appendix II hereto.

Article 21

(1) DLC value given for application

referred to in Article 20 may be

carried out if:

a. Application is owned by Applicant; or

b. shared ownership application.

(2) DLC value given on ownership referred

to in paragraph (1) shall be carried

out with the following weightings:

a. application owned by Applicant

referred to in paragraph (1) letter

a is weighted at 100% (one hundred

percent) of DCL Assessment for

Application;

b. for shared ownership application


b where applicant is the first

company contracting with the

domestic application developer is

weighted at 50% (fifty percent) of

DCL Assessment for Application;

c. application with shared ownership


b where Applicant is the second

company contracting with domestic

application developer is weighted

at 40% (forty percent) of DCL

Assessment for Application;

d. application with shared ownership


b where applicant is the third

company contracting with domestic

application developer is weighted

at 30% (thirty percent) of DCL

Assessment for Application; and

e. application with shared ownership


b where applicant is the fourth and

any following company contracting

with domestic application developer

is weighted at 20% (twenty percent)

of DCL Assessment for Application.

(3) Ownership of Applicant referred to in

paragraph (1) shall be evidenced by a

statement issued by the domestic

application development.

Article 22

DCL Assessment for application referred to

in Article 19 through Article 21 may be

carried out subject to the following

minimum provisions:

a. DLC value for Development aspects at a

minimum of 8% (eight percent);

b. Application embedded to Cellular

Telephone, Handheld Computer (Handheld]

and Tablet Computer products which DCL

is measured;

c. at a minimum of 2 (two) Local

applications embedded or 4 (four) Local

applications embedded are games;

d. at a minimum of 250.000 (two hundred

fifty thousand) active users of

application;

e. software injection shall be carried out

domestically;

f. use of domestic server; and

g. domestic online application store.

Part Three

DLC Value Measurement for certain products

Article 23

(1) DCL Assessment for Certain Cellular


and Tablet Computer products may apply

the following weightings:

a. Manufacture Aspect weighted at 10%

(ten percent) of Product DCL

Assessment;

b. development aspects weighted at 20%

(twenty percent) of Product DCL

Assessment; and

c. application aspects weighted at 70%

(seventy percent) of Product DCL

Assessment.

(2) Certain Cellular Telephone, Handheld

Computer (Handheld] and Tablet Computer

products referred to in paragraph (1)

must fulfill the following provisions:

a. DLC value for Development aspects

at a minimum of 8% (eight percent);

b. Application embedded to Cellular

Telephone, Handheld Computer

(Handheld] and Tablet Computer

products which DCL is measured;

c. at a minimum of 7 (seven) application

embedded or 14 (fourteen)

application are games;

d. at a minimum of 1.000.000 (one

million) active user for each

application;

e. software injection shall be carried

out domestically;

f. use of domestic server;

g. local online application store; and

h. Cost, Insurance and Freight (CIF)

at a minimum equal to IDR6.000.000,00

(six million rupiah).

Article 24

The provisions and procedures of DCL

Assessment for Manufacture Aspect,

development aspects and application

aspects provided for in Article 5 through

Article 22, except Article 21, shall apply

mutatis mutandis as the provisions and

procedures of DCL Assessment for weighting

referred to in Article 23.

Part Four

Investment-Based DCL measurement

Article 25

(1) In addition to DLC Value Measurement

referred to in Article 3 paragraph (3),

the measurement of DCL value for


(Handheld] and Tablet Computer products

may apply investment value calculation

scheme.

(2) DLC Value Measurement using investment

value scheme referred to in paragraph

(1) shall be carried out subject to the


a. applicable to new investment;

b. carried out on investment proposal

filed by Applicant; and

c. DLC value is measured by total

investment value.

(3) Investment placed by investment

proposal referred to in paragraph (2)

letter b shall be realized within a

maximum period of 3 three years.

Article 26

DLC value using investment value scheme

referred to in Article 25 is measured

subject to the following provisions:

a. investment worth IDR250.000.000.000,00

(two hundred fifty billion rupiah) to

IDR400.000.000.000,00 (four hundred

billion rupiah) is given DLC value at

20% (twenty percent);

b. investment worth above IDR

400.000.000.000,00 (four hundred billion

rupiah) through IDR550.000.000.000,00

(five hundred fifty billion rupiah) is

given DLC value at 25% (twenty five

percent);

c. investment worth above

IDR550.000.000.000,00 (five hundred fifty

billion rupiah) through

IDR700.000.000.000,00 (seven hundred

billion rupiah) is given DLC value at

30% (thirty percent);

d. investment worth above

IDR700.000.000.000,00 (seven hundred

billion rupiah) through

IDRl.000.000.000.000,00 (one trillion

rupiah) is given DLC value at 35%

(thirty five percent); and

e. investment over IDRl.000.000.000.000,00

(one trillion rupiah) is given DLC

value at 40% (forty percent).

Article 27

(1) Investment proposal referred to in

Article 25 paragraph (2) letter a must

contain as a minimum:

a. name of the owner company Cellular

Telephone, Handheld Computer

(Handheld) and Tablet Computer

products;

b. total investment value within a

maximum period of 3 three years;

c. detailed investment plan per year;

and

d. type of product using DLC value

with investment value calculation

scheme.

(2) Investment proposal referred to in

paragraph (1) shall be filed to the

Director General.

(3) With regard to the investment proposal

referred to in paragraph (2), Director

General will issue approval or refusal

within 5 (five) business days upon

receipt of proposal.

Article 28

(1) Investment referred to in Article 25

shall be realized at least at 40%

(forty percent) within a period of 1

(one) year upon approval of investment

proposal.

(2) Investment referred to in paragraph (2)

shall be carried out by the Applicant.

Article 29

DLC value given on investment value

calculation shall be valid up to one year

as of the date this Minister Regulation

shall come into effect.

CHAPTER III

DCL ASSESSMENT PROCEDURE

Part One

Application for DCL Assessment

Article 30

(1) DCL Assessment shall be carried out on

the application for assessment by the

applicant.

(2) Applicant shall file the Application

for DCL Assessment referred to in

paragraph (1) to the Director General

through Public Services Unit of

Ministry of Industry (UP2).

(3) the application referred to in

paragraph (2) shall be filed using the

format given in Appendix III Minister

Regulation and accompanied by:

a. company profile;

b. organization structure;

c. Own Estimate of DCL for the product

assessed;

d. photo/image of product accompanied

by particulars;

e. photo/image of work equipment/

facility;

f. photo/image of raw materials;

g. work plan diagram for product

development in the form of Gantt

chart;

h. product development planning

document; and

i. purchase invoice of work equipment,

list of assets and deed of

establishment as the supporting

document for depreciated cost of

engines /work equipment owned.

Article 31

(1) UP2 will check the completeness of

application referred to in Article 30

within 1 (one) business day.

(2) With regard to the application referred

to in paragraph (1) as complete, UP2

will forward the application to the

Director General.

(3) With regard to the application referred

to in paragraph (1) as incomplete, UP2

will inform the incompleteness to the

Applicant.

Article 32

(1) With regard to the application filed by

UP2 referred to in Article 5 paragraph

(2), Director General will check and

verify the accuracy and validity of

application .

(2) Verification referred to in paragraph

(1) shall be carried out for:

a. examining the validity and compliance

of application documents with

applicable laws; and

b. examining the readiness of

applicant for manufacturing in

accordance with the application for

DCL Assessment in terms of legal,

management and technical aspects.

(3) In the examination referred to in

paragraph (2), Director General may

carry out site check.

Article 33

Within 5 (five) business days upon

submission of application by UP2 referred

to in Article 5 paragraph (2), Director

General will issue:

a. approval of DCL Assessment in case of

complete and correct application; or

b. refusal of DCL Assessment in case of

incomplete and incorrect application.

Article 34

Applicant will deliver the approval


letter a to the Surveyor for DCL

Assessment.

Part Two

Surveyor

Article 35

DCL Assessment shall be carried out by

Surveyor.

Article 36

(1) The results of DCL Assessment carried

out by Surveyor shall be set out in the

verification report.

(2) Verification report referred to in

paragraph (1) will be submitted to the

minister with copies to the Applicant.

(3) Based on verification report referred

to in paragraph (2), minister will

issue DLC certificate.

(4) DLC certificate referred to in

paragraph (3) shall be valid for 2

(two) years.

Article 37

(1) Surveyor referred to in Article 35

shall be appointed by the Minister.

(2) DCL measurement by Surveyor referred to

in paragraph (1) shall be carried out

in adherence to the following

principles:

a. transparency;

b. excellent services; and

c. accountability.

(3) Surveyor referred to in paragraph (1)

will report on the performance of tasks

to Minister.

CHAPTER IV

SUPERVISION

Article 38

(1) Director General will supervise the DCL

measurement by Surveyor.

(2) Supervision referred to in paragraph

(1) shall be carried to ensure:

a. compliance of DCL measurement with

the provisions set forth herein;

and

b. compliance with the principles of DCL

measurement by Surveyor referred to

in Article 37 paragraph (2).


(2) shall be carried out at least 1

(one) in 1 (one) year.


(3) may be carried out in the course of

DLC Value Measurement, upon submission

of verification report or issuance of

DLC certificate.

Article 39

(1) In case of violation by surveyor in the

course of supervision referred to in

Article 38, the Minister may revoke the

appointment Surveyor.

(2) The penalty imposed on violation

referred to in paragraph (1) shall not

relieve the surveyor from other penalty

imposed in accordance with applicable

laws and regulations.

Article 40

(1) Director General will supervise the

consistency of production on DLC value

owned by the Applicant.



(one) time in 1 (one) year.

Article 41

(1) In case of violation by the applicant

under the supervision referred to in

Article 40, the Minister may revoke the

DLC certificate issued.

(2) The penalty as referred to in paragraph

(1) shall not relieve the applicant

from other penalties imposed in

accordance with applicable laws and

regulations.

Article 42

(1) Director General will supervise the

realization of investment referred to

in Article 25 paragraph (3) and Article

28.



(once) within 3 three months until the

realization of investment in accordance

with investment proposal.

Article 43

In the case of violation by the applicant

under the supervision referred to in

Article 42, Minister may:

a. revoke the DLC certificate issued; or

b. suspend the certificate of product

registration of Applicant for the type

stated in the investment proposal.

CHAPTER V

CONCLUDING PROVISIONS

Article 44

This Minister Regulation shall come into

force as of the date of promulgation.

Issued in Jakarta on July 26, 2016

MINISTER OF INDUSTRY OF

THE REPUBLIC OF INDONESIA,

signed

SALEH HUSIN

Promulgated in Jakarta on July 27, 2016

DIRECTOR GENERAL

LAWS AND REGULATIONS

Ministry OF HUKUM and HUMAN RIGHTS OF

THE REPUBLIC OF INDONESIA,

signed

WIDODO EKATJAHJANA

OFFICIAL GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 1090 OF 2016

APPENDIX I

REGULATION OF MINISTER OF INDUSTRY OF THE REPUBLIC OF

INDONESIA NUMBER 65/M-IND/PER/7/2016

REGARDING PROVISIONS ON AND PROCEDURE FOR CALCULATION OF

LOCAL CONTENT (TKDN) OF CELLULAR TELEPHONE, HANDHELD

COMPUTER AND TABLET COMPUTER PRODUCTS

Form 1.1.: TKDN for License

Company :

Address :

Type of Product :

Mark :

No. Development Variable Criteria Ownership KDN Weight TKDN

(%)

(1) (2) (3) (4) (5) (6) (7)

1 License (permit to use Chipset)

Available Own Property

10%

Available Domestic + Foreign Cooperation

Not Available Own Production and Development

Not Available Not Available

Form 1.2.: TKDN for Firmware

Company :

Address :

Type of Product :

Mark :


(%)

(1) (2) (3) (4) (5) (6) (7)

1 Operation System Development

(Software)

Available

Compiling source code, integration, customization,

modification of driver in the operation system

20%

Compiling source code in the operation system


2 Man Machine Interface (Software) Available

Boot Splash; Animation; Theme Style; Launcher, Menu

Setting; Shutdown

10%

Part (Proportional/multiplication of 20% per sub)


3 Application (Software) Available Injection Software

5%


4 Testing & Debugging (Testing Machine) Available Testing Machine

5%


Form 1.3.: TKDN for Industrial Design

Company :

Address :

Type of Product :

Mark :


(%)

(1) (2) (3) (4) (5) (6) (7)

1 Industrial Design (Product Design) Available Design Casing

10%


2 Industrial Design (Mechanical

Design or Internal Frame)

Available Internal Frame 10%


Form 1.4.: TKDN for Layout Design

Company :

Address :

Type of Product :

Mark :


(%)

(1) (2) (3) (4) (5) (6) (7)

1 Layout (Schematic Design) Available Schematic Diagram Design/Diagram Circuit

10%


2 PCBA Layout Available Circuit Board Layout Design/Layout PCB

10%


3 PCBA SMT (Testing & Calibration

Software)

Available PCBA SMT Testing & Calibration, Jig Test 10%


Procedure for filling out of form 1.1.

No. Column Information Explanation Example of Filling out

1 No (1) Number Serial Number 1.

2 No (2) Development

Variable

Permit issued by the patent holder to the other party based on the agreement on

granting of right to enjoy the economic benefit of an intellectual proprietary

right (for example patent, mark, or copy right) provided with protection within

certain term and conditions

Qualcom License

3 No (3) Criteria Evidence of license agreement or ownership of intellectual proprietary right Available

Not Available

4 No (4) Ownership Evidence of license agreement or ownership of intellectual proprietary right by

indicating license cost document

Own Property

Cooperation

Own Production and Development

Not Available

5 No (5) KDN The amount of local content applied in the development based on the ownership

portion (Column (4)), if KDN is not available 0% (Zero)

100%

50%

100%

0%

6 No (6) Weight The amount of weight determined in the development variable for license 10%

7 No (7) TKDN TKDN value produced based on the multiplication of column (5) to column (6)

and maximum weight of TKDN of development amounting to 20%

2%

1%

2%

0%

Procedure for filling out of form 1.2

1. Operation System (OS) Development.




Variable

Any matters related to modification, integration, customization, compiling

source code and/or kernel OS (Operating System) Development

3 No (3) Criteria Evidence of involvement of personnel and existence of work equipment used Available

Not Available

4 No (4) Activity Activity related to OS (Operating System) development

- Compiling source code, integration,

customization, modification of driver in

the operation system

- Compiling source code of the operation

system

Not Available

5 No (5) KDN

The amount of local content applied in the development based on the activity

carried out in appropriate OS development (Column (4)), if KDN is not

available 0% (Zero)

100%

50%

0%

6 No (6) Weight The amount of weight determined in the development variable for Operation

Software 20%



4%

2%

0%


2. Man Machine Interface.




Variable

Any matters related to modification, Boot Splash; Animation; Theme Style;

Launcher, Menu Setting; Shutdown Menu Setting modification


Not Available

4 No (4) Activity Activity related to Man Machine Interface

- Boot Splash; Animation; Theme Style;

Launcher, Menu Setting; Shutdown

- Part (Proportional/multiplication of 20%

per sub)

Not Available

5 No (5) KDN


carried out in appropriate Man Machine Interface (Column (4)), if KDN is not

available 0% (Zero)

100%

20%

0%

6 No (6) Weight The amount of weight determined in the development variable for Man

Machine Interface 10%



2%

0.4%

0%


3. Application (Software)



2 No (2)

Development

Variable

Any matters related to Injection (Embedded) local application into Smartphone,

minimum 1 app

Inject Go-jek Application

3 No (3) Criteria Evidence of involvement of personnel and existence of work equipment used

Available

Not Available

4 No (4) Activity Activity related to Injection Apps

Injection Software of Local Application

Not Available

5 No (5) KDN


carried out in appropriate injection software (Column (4)), if KDN is not

available 0% (Zero)

100%

0%

6 No (6) Weight

The amount of weight determined in the development variable for injection

software

5%

7 No (7) TKDN

TKDN value produced based on the multiplication of column (5) to column (6)


1%

0%

0%


4. Testing and debugging




Variable Any matters related to Testing and Debugging Radio Frequency Test


Not Available

4 No (4) Activity Activity related to Testing and Debugging Testing Machine

Not Available

5 No (5) KDN


carried out in appropriate injection software (Column (4)), if KDN is not

available 0% (Zero)

100%

0%

6 No (6) Weight The amount of weight determined in the development variable for Testing and

Debugging 5%



1%

0%


1. Industrial Design




Variable Any matters related to Industrial Design (Product Design) Casing Design


Not Available

4 No (4) Activity Activity related to Industrial Design (Product Design) Casing Design

Not Available

5 No (5) KDN


carried out in appropriate Product Design (Column (4)), if KDN is not available

0% (Zero)

100%

0%

6 No (6) Weight The amount of weight determined in the development variable for Product

Design 10%



2%

0%


2. Mechanical Design




Variable Any matters related to Mechanical Design/Internal Frame Frame/Chasis Design


Not Available

4 No (4) Activity Activity related to Mechanical Design Frame/Chasis Design

Not Available

5 No (5) KDN


carried out in appropriate Mechanical Design (Column (4)), if KDN is not

available 0% (Zero)

100%

0%

6 No (6) Weight The amount of weight determined in the development variable for Mechanical

Design 10%



2%

0%


1. Layout (Schematic Design)




Variable Any matters related to Layout (Schematic Design) Schematic Diagram Design/Diagram Circuit


Not Available

4 No (4) Activity Activity related to Layout (Schematic Design) Schematic Diagram Design/Diagram Circuit

Not Available

5 No (5) KDN

The amount of local content applied in the development based on the activity carried out

in appropriate Layout (Schematic Design) (Column (4)), if KDN is not available 0%

(Zero)

100%

0%

6 No (6) Weight The amount of weight determined in the development variable for Layout (Schematic

Design) 10%

7 No (7) TKDN TKDN value produced based on the multiplication of column (5) to column (6) and

maximum weight of TKDN of development amounting to 20%

2%

0%


2. PCBA Layout




Variable

Any matters related to PCBA Layout

Circuit Board Layout Design/PCB Layout


Not Available

4 No (4) Activity Activity related to PCBA Layout Circuit Board Layout Design/PCB Layout

Not Available

5 No (5) KDN


carried out in appropriate PCBA Layout (Column (4)), if KDN is not available

0% (Zero)

100%

0%

6 No (6) Weight The amount of weight determined in the development variable for PCBA

Layout 10%



2%

0%


3. PCBA SMT (Software testing and calibration)




Variable

Any matters related to PCBA SMT Testing and Calibration, Jig Test

PCBA Testing


Not Available

4 No (4) Activity Activity related to PCBA SMT Testing and Calibration, Jig Test SMT Machine

Not Available

5 No (5) KDN


carried out in appropriate PCBA SMT Testing and Calibration, Jig Test

(Column (4)), if KDN is not available 0% (Zero)

100%

0%

6 No (6) Weight The amount of weight determined in the development variable for PCBA SMT

Testing and Calibration, Jig Test 10%



2%

0%

MINISTER OF INDUSTRY OF THE REPUBLIC OF INDONESA

signed

SALEH HUSIN


3. PCBA SMT (Software testing and calibration)




Variable

Any matters related to PCBA SMT Testing and Calibration, Jig Test

PCBA Testing


Not Available

4 No (4) Activity Activity related to PCBA SMT Testing and Calibration, Jig Test SMT Machine

Not Available

5 No (5) KDN


carried out in appropriate PCBA SMT Testing and Calibration, Jig Test

(Column (4)), if KDN is not available 0% (Zero)

100%

0%

6 No (6) Weight The amount of weight determined in the development variable for PCBA SMT

Testing and Calibration, Jig Test 10%



2%

0%

For true copy

Secretariat General of

Ministry of Industry

Head of Law and Organization Bureau

signed

Eko S.A. Cahyanto


THE REPUBLIC OF INDONESA

signed

SALEH HUSIN

APPENDIX II

REGULATION OF MINISTER OF INDUSTRY OF

THE REPUBLIC OF INDONESIA NUMBER

65/M-IND/PER/7/2016

REGARDING PROVISIONS ON AND PROCEDURE

FOR CALCULATION OF LOCAL CONTENT

(TKDN) OF CELLULAR TELEPHONE, HANDHELD

COMPUTER AND TABLET COMPUTER PRODUCTS

MECHANISM OF CALCULATION OF TKDN VALUE OF APPLICATION

1. Determination of weight for process or phase domestic

activity and component for Manufacturer TKDN related to

production of software product, as follows:

Calculation Component Design

Copy

Right

Manpower

Competency

Certificate

Work

Equipment

Activity Phase

Requirement Specification 4% 3% 4% 3% 2%

Architectural Design 7% 6% 5% 3% 2%

Programming 12% 7% 6% 6% 5%

Software Testing 4% 0% 3% 2% 2%

Software Packaging 3% 4% 2% 3% 2%

2. Any matters related to calculation of TKDN value of

Application:

a. Gantt chart: Diagram describing the schedule, sequence,

and relationship of work carried out in the software

development process.

b. Use case: Breakdown of several scenario of interaction

between the user and software when performing one or

more function(s) in the software.

c. Product backlog: Description of several features that

will be implemented in the software.

d. Unit test: Instruction of or procedure for experiment

to the component in software source code.

f. User acceptance test: End product experiment activities

software carried out by the prospective user to

identify that the end product of software is already in

accordance with the need agreed by the software user

and developer.

g. Requirement engineer. Role in the software developer

team having responsibility to identify the needs for

software’s feature and function

h. System analyst: Role in the software developer team

having responsibility to analyze the software’s need.

i. Software designer. Role in the software developer team

having responsibility to design the software

architecture and component.

j. Technical writer. Role in the software developer team

having responsibility to document the work product

during the project development process and prepare the

software product documentation for the user.

3. Procedure for assessment to Manufacturer TKDN related to

the software production as follows:

3.1 Design

3.1.1 Requirement Specification (requirements)

Requirement Specification in the design context

related to the documentation of the project

planning and agreement on functions that will

be implemented in the software developed.

1. There is planning document of product

development describing minimum the

following matters:

a. Aims and objectives of software product

developed. Weight: 0.5%;

b. Organizational structure software product

developer team. Weight: 0.5%; and

c. Work planning in terms of Gantt chart.

Weight: 0.5%;

2. There is software requirement specifications

document describing the needs that will be

implemented in the software. The description

of functions can be explained in terms of

use case and/or product backlog. Weight:

2.5%;

3.1.2 Architectural Design

Software architectural design in design context

related to the design documentation of outline

of software components together with the

relationship between each component in

implementing the functions of software developed.

a. There is template or writing standard for the

architectural design documents. Weight: 1%;

b. There is document illustrating and describing

the architectural Design. Weight: 3%; and

c. There is document illustrating and

describing the breakdown or realization of

architectural design. Weight: 3%;

3.1.3 Programming

Programming in the design context related to

the implementation process of the functions

required according to the design already

prepared previously.

a. There is source code. Weight: 4%;

b. There is repository of source code storage.

Weight: 2%;

c. There is documentation of source code in

brief in each module or component in the

source code. Weight: 4%; and

d. There is clear mapping (traceability) in

the components in the source code to the

components in the architectural design.

Weight: 2%;

3.1.4 Software Testing

Software testing in the design context related

to problem solving process (bug) in the result

of software implementation.

a. There is experiment design (test plan)

document. Weight: 1%;

b. There is unit test for each component in

the source code. Weight: 1%;

c. There is document functional testing scenario

for each functionality of software that

will be used by the user. Weight: 1%; and

d. There is user acceptance test document.

Weight: 1%;

3.1.5 Software Packaging

Software Packaging in the design context

related to the packaging of software end

product that will be used by the user.

a. There is document software use guide.

Weight: 1.5%; and

b. There is software promotion document

consisting of:

1) Software icon or logo. Weight: 0.5%;

2) Short description on software. Weight:

0.5%; and

3) Example of view of software when operating.

Weight: 0.5%;

3.2 Intellectual Proprietary Right

3.2.1 Requirement specification

Requirement specification in the context

intellectual proprietary right related to

project planning documentation and agreement on

functions that will be implemented in the

software developed.

Product development planning document as

referred to in point b numeral 1) item a shall

be equipped with the information related to the

following matters:

a. Requirement Specification Document equipped

with the Certificate of Registration of

Invention. Weight: 1%; and

b. Requirement Specification Document equipped

with the Certification of Copy Right.

Weight: 2%.


Software architectural design in the context of

Copy Right related to design documentation of

outline of software components together with

the relationship between each component in

implementing the functions of software

developed.

Software architecture document shall be

equipped with the information related to the

following matters:

a. Architectural Design Document equipped with

Certificate of Registration of Invention.

Weight: 2%; and

b. Architectural Design Document equipped with

Certification of Copy Right. Weight: 4%.

3.2.3 Programming

Programming in the context of Copy Right

related to implementation process of the

functions required according to the design

already prepared previously.

a. Source code equipped with Certificate of

Registration of Invention. Weight: 1%;

b. Documentation of module/component equipped

with Certificate of Registration of

Invention. Weight: 2,5%;

c. Documentation of module/component equipped

with Certificate of Registration of

Invention. Weight: 1%; and

d. Documentation of module/component equipped

with Certification of Copy Right. Weight:

2,5%.


Software Packaging in the context of Copy Right

related to the packaging and distribution of

software end product that will be used by the

user.

a. Logo of software equipped with Certificate

of Registration of Invention. Weight: 0,5%;

and

b. Logo of software equipped with Certification

of Copy Right. Weight: 1,5%.

c. Software packaging document equipped with

Certificate of Registration of Invention.

Weight: 0,5%

d. Software packaging document equipped with

Certification of Copy Right. Weight : 1,5%

3.3 Manpower


Requirement specification in the context of

manpower related to the persons conducting

project planning, collection of need for

software, and analysis of need for software.

a. There is one person with role as project

manager of software product development

(project manager). Weight: 2%; and

b. There is one or more person(s) with role as

software engineer (requirement engineer).

Weight: 2%;


Architectural design of software in the context

of manpower related to the persons conducting

system analysis and designing of software

developed.

a. There is one or more person(s) with role as

system analyst. Weight: 2%; and


software designer. Weight: 1.5%;

c. There are two or more persons with role as

interface designer (UI/UX designer).

Weight: 1.5%

3.3.3 Programming

Programming in the context of manpower related

to persons conducting software implementation

based on the software need and design.

a. There are three or more persons with role

as programmer. Weight: 4%; and

b. There are two or more persons with role as

interface designer (UI/UX designer).

Weight: 2%;


Software Testing in the context of manpower

related to persons conducting experiment to

software developed.

a. There is one or more persons with role as

tester. Weight: 1.5%; and

b. There is evidence of participation or

attendance of three (3) or more tester(s)

from the prospective software user. Weight:

1.5%;


Software packaging in the context of manpower

related to the persons conducting packaging of

software end product.

a. There is one or more person(s) with role as

technical writer. Weight: 1%; and


graphic artist. Weight: 1%;

3.4 Competency Certificate

Type of Certification acknowledged is the profession

certificate issued by the Profession Certification

National Board (BNSP) of the Republic of Indonesia.

The submission process of certification shall be made

through the Profession Certification Institution (LSP)

by the license holder from BNSP-RI.


Requirement specification shall be prepared by

the personnel having certification according to

the standard:

a. SKKNI of Cloud Computing. Weight: 1.5%; and

b. SKKNI of Mobile Computing. Weight: 1.5%;


The Architectural design shall be prepared by

the personnel having certification according to

the standard:

a. SKKNI of Cloud Computing. Weight: 1%;

b. SKKNI of Mobile Computing. Weight: 1%; and

c. SKKNI of Information Security. Weight 1%.

3.4.3 Programming

Programming of software source code shall be

conducted by the personnel having certification

according to the standard:

a. SKKNI of Cloud Programmer. Weight: 2%;

b. SKKNI of Computer and System Network

Mobile. Weight: 1%;

c. SKKNI of Cloud Computing. Weight: 1%;

d. SKKNI of Mobile Computing. Weight: 1%; and

e. SKKNI of Information Security. Weight: 1%;


Software testing shall be conducted by the

personnel having certification according to the

standard:

a. SKKNI of Programmer. Weight: 0.5%;

b. SKKNI of Computer and System Network: 0.5%;

c. SKKNI of Cloud Computing. Weight: 0.5%; and

d. SKKNI of Mobile Computing. Weight: 0.5%;


Software packaging shall be conducted by the

personnel having certification according to the

standard:

a. SKKNI of Mobile Computing. Weight: 0.5%;

b. SKKNI of Data Center Management. Weight: 1%;

c. SKNI of Computer and System Network.

Weight: 0.5%; and

d. SKKNI of Quality Assurance. Weight: 0.5%;

3.5 Work Equipment


1. There is standardization of work equipment

for production process. Weight: 0.5%; and

2. All work equipment used for production

process are legal. Weight: 1.5%;



for production process of Architectural

Design. Weight: 0.5%; and

2. All work equipment used for production

process of Architectural Design are legal.

Weight: 1.5%;

3.5.3 Programming


for programming process. Weight: 1%; and

2. All work equipment used for programming

process are legal. Weight: 4%.



for software testing process. Weight: 0.5%;

and

2. All work equipment used for software

testing process are legal. Weight: 1.5%.



for software packaging process. Weight:

0.5%; and

2. All work equipment used for software

packaging process are legal. Weight: 1.5%;

For true copy



Head of Law and Organization

Bureau

signed

Eko S.A. Cahyanto



signed

SALEH HUSIN

APPENDIX III

REGULATION OF MINISTER OF INDUSTRY OF THE

REPUBLIC OF INDONESIA NUMBER 65/M-IND/PER/7/2016

REGARDING PROVISIONS ON AND PROCEDURE FOR

CALCULATION OF LOCAL CONTENT (TKDN) OF CELLULAR

TELEPHONE, HANDHELD COMPUTER AND TABLET

COMPUTER PRODUCTS

FORM OF APPLICATION FOR CALCULATION OF TKDN VALUE

Number :

Encl. : .. files

Re. : Application for

Assessment to TKDN

Jakarta, … 20..

To:

Director General of Metal,

Machine, Transportation

Means and Electronics

Industry


Jl. Gatot Subroto Kav. 52-53

South Jakarta

Dear Sir,

We, the signatories:

Company :

Address :

Verifier :

Hereby submit the application for Issue of

certificate of TKDN with data as enclosed for:

Type of Product :

Mark :

Type :

Thank you for your attention and cooperation.

Faithfully Yours,

.............................

Company’s President Director

For true copy



Head of Law and Organization

Bureau

signed

Eko S.A. Cahyanto



signed

SALEH HUSIN

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