Indonesia enforces mandatory SNI certification for lithium batteries and sets TKDN local content requirements of at least 40% for C&I storage projects.
As Southeast Asia’s largest economy and the world’s fourth most populous nation, Indonesia actively drives its energy transition toward the “Net Zero Emissions by 2060” goal. In this context, the country’s energy storage system (ESS) market – especially in the residential and commercial & industrial (C&I) sectors – shows immense growth potential. However, entering this emerging market presents significant challenges. Exporters and manufacturers must strictly adhere to Indonesian national standards and requirements.
I. SNI – The National Standard
SNI (Standar Nasional Indonesia) serves as Indonesia’s sole national standard. The National Standardization Agency of Indonesia (BSN) establishes and manages this standard. Furthermore, the Ministry of Industry (Kemenperin) mandates SNI compliance for specific products before they can enter the market. Lithium-ion batteries and related energy storage products now fall under mandatory SNI certification. This ensures product quality, safety, and environmental protection.
II. TKDN – Local Content Requirement
TKDN (Tingkat Komponen Dalam Negeri), or “Domestic Component Level,” represents a key policy tool for the Indonesian government. Through this policy, the government fosters domestic industrial development and enhances local manufacturing competitiveness. Specifically, TKDN requires products or services to contain a specified percentage of local content for government procurement, state-owned enterprise (SOE) projects, and projects that benefit from specific incentives.
For energy storage systems, TKDN has become a crucial strategic factor. It directly influences market access and tariff benefits for large-scale C&I projects.
The Indonesian government continues to raise TKDN requirements for energy storage systems year by year. Currently, C&I energy storage projects participating in tenders by the state utility company (PLN) or seeking government subsidies must meet a minimum TKDN level of 40%. This means that a business model relying solely on importing fully assembled units will struggle to meet market access criteria – especially for large-scale infrastructure and renewable energy projects.
TKDN is not merely a compliance requirement; it also drives market competitiveness. Products meeting high TKDN standards gain procurement priority in government and SOE projects. In addition, they may benefit from policy support such as import duty exemptions and tax incentives. Conversely, products that fail to meet TKDN standards face market barriers that limit their expansion into the mainstream C&I market.
The Indonesian market for lithium-based energy storage batteries offers immense business opportunities. At the same time, its stringent regulatory framework places high demands on market participants. To successfully enter and establish a foothold in this market, companies must adopt forward-looking compliance strategies.
