More than a month has passed since the presentation of the new iPhone, but official sales in Indonesia have yet to begin. It is possible that they may not start anytime soon due to Apple facing difficulties obtaining the TKDN certificate.
TKDN refers to the percentage of a product’s components that are produced domestically. These can be parts, labor, services, or a combination of these. For smartphones, this figure must be at least 40%.
The issue of granting access for Apple’s new products to the Indonesian market is currently being discussed at the level of the country’s Minister of Industry, Agus Gumiwang Kartasasmita. During a meeting with entrepreneurs who are part of the National Team for the Use of Domestic Products (P3DN), Agus confirmed that Apple has not yet fulfilled the requirements set by the government.
“As for the issue currently being discussed among the public, namely Apple’s iPhone 16, we cannot allow it into the Indonesian market because it is still in the process of obtaining the TKDN certificate, which is a condition for smartphone imports,” said the minister.
Apple has already responded to the difficulties in importing its new products into Indonesia. The company from Cupertino highlighted its significant investments in Indonesia and expressed its eagerness to introduce its latest products, including the iPhone 16, as soon as possible.
“We have a strong commitment to Indonesia, and we are eager to present our latest products, including the iPhone 16 series, to customers as soon as possible. We are proud to have made significant investments and continue to expand them. Apple supports entrepreneurs, creators, and the developer ecosystem across Indonesia,” Apple stated.
The amount causing the disagreement is already known. The same Minister of Industry, Agus Gumiwang Kartasasmita, explained that the government is still awaiting additional investments from the iPhone manufacturer. So far, the company has invested only 1.48 trillion Indonesian rupiahs. According to Kartasasmita, this figure is relatively small compared to the volume of products Apple imports into Indonesia.
Apple’s investment commitments to the government amount to 1.71 trillion Indonesian rupiahs. This means the shortfall, which is preventing new iPhones from appearing in Indonesian retail stores, is 230 billion rupiahs (approximately $15 million).
“Once they fulfill this commitment in full, we will grant them permission to sell the iPhone 16. All of this is based on fairness to the companies that diligently comply with the requirements,” said Kartasasmita.
According to the regulation on the calculation of local content value for mobile phones, handheld computers, and tablets, issued on December 29, 2017, TKDN calculations can be made according to three schemes.
“Namely, the production or manufacturing scheme within the country, the application or software development scheme within the country, or the domestic innovation development scheme. In this case, Apple is using the innovation development scheme,” Kartasasmita said. Apple had previously obtained the TKDN certificate, but its validity period expired, so it needs to be renewed.
So far, Apple’s investments in Indonesia have taken the form of building Apple Developer Academy educational institutions. There are already three such academies in the country. During a recent visit to Indonesia by Apple CEO Tim Cook, it was announced that the Cupertino-based tech giant would establish a fourth Apple Developer Academy in Bali. However, the Indonesian government expects Apple to build a factory or research center in the country.
“Apple needs to create not just academies, not just educate young people; we urge Apple to open a manufacturing facility in Indonesia,” Kartasasmita said. If Apple fulfills these conditions, it will achieve a TKDN value of 40%. This would allow the iPhone 16 and Apple products using cellular networks to enter the Indonesian market.
The maker of Apple products would be happy to build a factory but is making demands that Indonesian officials are unwilling to meet. Minister of Communications and Information Budi Arie Setiadi said that Apple is asking Indonesia for the same benefits it received in Vietnam. There, the American company secured a 50-year tax exemption. Indonesia, however, cannot agree to this. “This is impossible; it is absolutely unacceptable for us,” the minister said.
It is worth noting that Apple is one of the few major smartphone manufacturers without a factory in Indonesia. Other major brands, such as Samsung from South Korea and Xiaomi, Vivo, and Oppo from China, already assemble their phones in the country. Apple continues to fully import its products.
Sources: radartulungagung, disway.id
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