Implementation of Domestic Component Level Certification Policy for Manufacturing MSMEs in Bogor Regency, Indonesia

Abstract

Micro, small, and medium enterprises (MSMEs) is the economic sector that contribute significantly to Indonesia’s economic stability and growth, yet they often face challenges in accessing opportunities to purchase government goods due to strict certification processes. This study examines the implementation of the Domestic Component Level (TKDN) certification policy for manufacturing MSMEs in Bogor Regency, Indonesia. Using Edward III’s policy implementation model, this research explores four key factors affecting policy effectiveness: communication, resources, disposition of implementers, and bureaucratic process. Data were collected through document analysis and in-depth interviews with government officials, members of the Reformasi Birokrasi team, and MSME’s representatives. The results highlight significant challenges in digital literacy, resource allocation, and bureaucratic process, which restrict MSMEs from obtaining TKDN certificate. Moreover, while there are positive initiative among government officials to enhance the process, limited technical training is affecting the outcome quality after support provided to MSMEs. Results indicate the need for improved communication strategies, improved resources capability, and streamlined administrative procedures to foster greater MSME participation in government goods procurement. This research advances our understanding of policy implementation by emphasizing the necessity of adaptable frameworks that address technological and administrative disparities within target groups.