Optimizing the Domestic Component Level, MIND ID Group Receives the Cinta Indonesia 2022 Award

Jakarta – The MIND ID, Mining Industry Indonesia, Group, through PT Antam Tbk, has received the Cinta Indonesia 2022 Award on Thursday, 27 October 2022. The award, initiated by Republika, was handed over by State-Owned Enterprises Ministry’s Vice Minister 1, Pahala Mansury, to MIND ID, the State-Owned Enterprise Holding Company for the Mining Industry, for having achieved satisfactory Domestic Component Level.

MIND ID’s Director of Institutional Relations, Dany Amrul Ichdan, said that the award reflects MIND ID’s continual optimization of domestic component use in all lines. MIND ID also undertakes efforts to optimize the use of domestic components for the operations of the company, including the Small Medium Enterprises under its stewardship program.

“The Company also encourages the Members of MIND ID consisting of PT Aneka Tambang Tbk, PT Bukit Asam Tbk, PT Freeport Indonesia, PT Inalum (Persero) and PT Timah Tbk, to pay due attention to Domestic Component Level in accordance with the directives of the Minister of State-Owned Enterprises, Erick Thohir, to support the Government’s program in using local content in the efforts to boost the growth of domestic industries,” he continued.

Currently, the MIND ID Group has reached an average Domestic Component Level of around 55 percent. The MIND ID Group has also optimized the use of domestic components through its Small Medium Enterprises under its stewardship program, by encouraging them to raise their class through the cluster approach, such as trade, services, industry, agriculture, livestock farming and plantation.

The program is implemented through a selection process, counselling in compiling business plans, raising the capacity of SMEs and working capital assistance through the SME Funding Program scheme.

“MIND ID also undertakes efforts to encourage SME’s to become part of the company’s supply chain, in line with the directives of the President and Minister of State-Owned Enterprises. Currently, the SME clusters which have become suppliers of the MIND ID Group, include the agriculture, fishery and industry clusters,” Dany added.

During 2020-2021, there were more than 6,500 SMEs under the Company’s stewardship program, 501 among them have succeeded in achieving a higher class. The MIND ID Group has targeted 285 SME’s to be raised to a higher class in 2022.

Domestic Component Level is the percentage of components in goods and services, or a combination of goods and services, produced in Indonesia. This is based on Government Regulation No 29 of 2018 on Industrial Empowerment.