Implementation and Analysis of Domestic Component Level in the Bangkalak Road Construction Project on Simeulue Island

Abstract

Indonesia is a country with substantial natural resources and significant economic growth potential. With increasing social needs both in major cities and developing regions, the execution of development projects often encounters challenges in the implementation and utilization of resources. Thus, the Domestic Component Level (TKDN) has become increasingly important as an effort to enhance domestic independence, contributing to the development of local industries, local economic growth, and reducing reliance on foreign labor. This study focuses on the implementation of material components, labor, work tools, or facilities concerning TKDN. The aim is to understand the scope of implementation in using material components, labor, and work tools concerning TKDN. The research provides considerations on the growing importance of increasing domestic independence, which can serve as a reference to reduce dependence on foreign labor. The study utilizes Microsoft Excel 2019 for data analysis, with primary and secondary data including soft drawings, Unit Price Analysis (AHSP), Budget Plan (RAB), research location maps, and the Simeulue Regency map. Based on the analysis results, the calculated percentage of TKDN for labor from the Domestic Group (KDN) is 100%, while the percentage for work tools is 47.77% for the KDN and 52% for the Foreign Group (KLN). For material components, the KDN accounts for 97.62% and the KLN for 3%. These findings indicate that the highest value of TKDN is entirely attributed to the use of domestic labor at 100%, whereas the lowest value is for the partial use of domestic work tools at 47.77%. The components that significantly influence the final TKDN value are the coefficients and material quality. The use of certified materials or tools that are still active is crucial. The project concluded that the standard TKDN value of 40% has been implemented.