Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said that the American electronics giant, Apple, has not fulfilled its total investment commitment of IDR 1.7 trillion. The investment commitment was based on an agreement until 2023. As a result, Apple’s iPhone 16 product is still prohibited from being traded in Indonesia. Agus Gumiwang explained that his party had conducted an audit to find out how much investment shortfall Apple had to immediately fulfill.
Based on the audit, the shortfall that had to be fulfilled for the total investment of IDR 1.7 trillion was less than IDR 300 billion. “Indeed, based on the survey, there is an investment shortfall that must be fulfilled, less than IDR 300 (billion). For a company that big, that’s peanuts,” said Agus during a meeting with Commission VII of the DPR on Tuesday (12/11/2024) as reported by the official YouTube broadcast of Parliament TV.
Agus Gumiwang then revealed the sales value of Apple products for mobile phones, handheld computers and tablets (HKT) in 2023 in Indonesia worth more than IDR 30 trillion. Thus, according to him, the government will try to find a solution to this condition.
“In 2023 alone, Apple’s sales in Indonesia, only HKT (products), are more than IDR 30 trillion. So we will appeal this, it is possible that we will set a higher TKDN (domestic component level) value,” said Agus. According to him, the government’s steps were taken to maintain fairness with other companies that have fulfilled their TKDN commitments in Indonesia. Especially if the company has established a factory that opens up many jobs.
Pursue three investment focuses until 2026 Agus further explained the government’s plan to negotiate three investment commitments with Apple until 2026. Also read: Apple Writes to Minister of Industry Regarding iPhone 16 Not Yet Allowed to be Sold in Indonesia First, the government wants Apple to build research and development (R&D) facilities in Indonesia. Agus emphasized that R&D is very different from the establishment of the Apple Academy which currently exists in the country. “Then secondly, Apple must have seen and made Indonesia a part of their global value chain. We have identified from six categories of Apple parts or components, which can be produced in Indonesia, there are approximately 17 companies,” said Agus. Third, the Indonesian government will encourage the continuation of the development of the Apple Academy. According to Agus, Apple has currently built three Apple Academies in Indonesia. Namely those in South Tangerang, Batam and Surabaya.
The fate of the iPhone 16 depends on TKDN Previously, the Spokesperson for the Ministry of Industry, Febri Hendri Antoni Arif, said that his party is currently still processing the application for TKDN certification for the iPhone 16 series. The Ministry of Industry also linked the process of issuing TKDN certification with Apple’s investment commitment. If the investment has been realized, then the TKDN certificate can be given and the iPhone 16 can immediately be officially distributed in Indonesia. “We are currently processing the application for TKDN certification for the iPhone 16. And we link it to Apple’s investment commitment to build the Apple Academy. Previously, Apple’s top brass in Indonesia said that they would invest,” said Febri at the Ministry of Industry Office, South Jakarta, Monday (7/10/2024).
Apple Offers IDR 157 Billion Investment to Build Accessory Factory in Indonesia, Ministry of Industry: We’ve Heard
The Ministry of Industry (Kemenperin) confirmed that it is aware of Apple Inc.’s plan to build an accessory and component factory for Apple devices in Indonesia. The technology company from the United States is offering an investment of 10 million US dollars or around IDR 157 billion to support sales of the iPhone 16 series in Indonesia. “We have heard this news and have communicated, but the plan will be discussed in more detail,” said Deputy Minister of Industry (Wamenperin) Faisol Riza when met at the St. Regis Jakarta, Wednesday (6/11/2024). Faisol explained that Apple had previously shown interest in investing in Indonesia, but the commitment was considered not yet strong. With this new commitment, Faisol hopes that Apple can realize it soon. “Previously we heard a commitment from Apple, but until some time ago it was still lacking. We hope that the current commitment can be realized soon,” he said.
Adding to this context, the Indonesian Ministry of Industry and Ministry of Trade have indeed imposed restrictions on devices that do not meet the Domestic Component Level (TKDN). Minister of Trade, Budi Santoso, stated that his party will take action against e-commerce platforms that are still selling the iPhone 16 and Google Pixel because they do not have a distribution permit in Indonesia. This is due to the incompatibility of local components in these products. This firm step is one of the reasons that prompted Apple to consider building a local accessory and component factory in Indonesia. By building production facilities domestically, Apple is trying to meet TKDN regulations so that its products, including the iPhone 16, can be officially distributed in the Indonesian market.
Apple Writes to Minister of Industry Regarding iPhone 16 Not Yet Allowed to be Sold in Indonesia
Spokesperson for the Ministry of Industry (Kemenperin) Febri Hendri Antoni Arif said that Apple as the manufacturer of the iPhone 16 series has sent a letter to Minister of Industry (Menperin) Agus Gumiwang Kartasasmita. In its letter, Apple asked for time to meet Minister of Industry Agus Gumiwang to discuss the distribution of the iPhone 16 in Indonesia. The meeting was also related to the government’s policy which until now still prohibits the distribution of the iPhone 16 in Indonesia. Also read: Ministry of Industry Plans to Deactivate the IMEI of the iPhone 16 Sold in Indonesia
The reason is, Apple has not met the domestic component level (TKDN) requirement of 40 percent. “(Apple) has (contacted). Already through a letter. Apple has written to the Minister and asked for a meeting. I don’t know the date of the letter yet,” said Febri at the Ministry of Industry Office, South Jakarta, Thursday (10/31/2024).
Ask for an audience. Yes, but for us, for the Minister, immediately realize that (TKDN agreement). Just be concrete. Just be concrete, no need for sweet promises that are flowery,” he said. When asked whether the meeting between the Minister of Industry and Apple representatives would be held next week, Febri admitted that he did not know. Also read: Ministry of Industry Asks Tokopedia and TikTok to Drop Sellers Selling iPhone 16 “I don’t know. “Yes, I haven’t seen the letter yet,” said Febri. In his explanation, Febri revealed that Apple had previously agreed to fulfill the TKDN of 40 percent through an innovation scheme, namely by building the Apple Academy in several regions in Indonesia.