Photo: Apple (REUTERS/Jason Lee)
FILE PHOTO: An Apple company logo is seen behind tree branches outside an Apple store in Beijing, China December 14, 2018. REUTERS/Jason Lee/File Photo |
Why TKDN Permit is Important for iPhone 16 in Indonesia?
The TKDN requirement in Indonesia is a government policy to ensure that technology products entering the Indonesian market contain a certain amount of local components. The aim is to increase investment contributions from global manufacturers and encourage the development of local industries.
iPhone TKDN Permit is a challenge for Apple as their devices are known to be more dependent on the global production ecosystem. If the TKDN requirement is not met, products like the iPhone cannot be officially sold in Indonesia. This leads to product distribution being limited to the unofficial market, which often carries the risk of higher prices and unclear warranties.
Also Read: Apple Asked to Invest in Indonesia: CORE Emphasizes Importance of Industrialization Roadmap
Apple's New Investment Proposal: Is it Adequate?
In addition to the investment debt issue, Apple also faces other challenges regarding their investment proposal for the 2024-2026 period. In the proposal, Apple offers an investment value of USD 100 million or about IDR 1.58 trillion.
However, the Minister of Industry considers that this figure still does not meet the principle of principle of justice which is being formulated by the government. This principle includes four main criteria that foreign companies, including Apple, must fulfill:
- Investment Comparisons in Other Countries
The government compares the value of Apple's investment in Indonesia with other countries such as Vietnam. If investment in Indonesia is much smaller than other countries, the government considers this unfair. - Contribution from Other Manufacturers in Indonesia
Apple was also assessed based on the contributions made by other mobile phone, computer and tablet (HKT) manufacturers that have invested in Indonesia. - Value-Added Creation and State Revenue
The government looks at how much impact Apple's investment has on local value-added, including tax contributions and other economic impacts. - Local Labor Absorption
Apple is expected to absorb more local labor, both through manufacturing, distribution, and after-sales service.
Agus stated that his party will continue to negotiate with Apple to ensure that the investment value offered meets these four criteria.
Impacts for iPhone 16 Consumers in Indonesia
For consumers in Indonesia, the delayed launch of iPhone 16 in Indonesia is certainly not good news. As one of Apple's flagship products, the iPhone 16 offers excellent features such as a more advanced camera, the latest chipset performance, and premium design. However, without the TKDN license, this device cannot officially enter the Indonesian market.
Alternatively, consumers usually purchase devices through unauthorized distributors or make purchases overseas. Unfortunately, this often carries risks, such as:
- More expensive price due to the individual import tax burden.
- No official warrantyThis makes it difficult to claim repairs in the event of a breakdown.
- Difficulty in obtaining after-sales service for devices that are not officially supported by Apple Indonesia.
Government Steps in Resolving the TKDN Issue
In its efforts to resolve this issue, the Ministry of Industry has taken some important steps. First, it will write to Apple to discuss two key issues:
- Repayment of USD 10 Million Investment Shortfall
This is a key requirement for obtaining a TKDN license. - Investment Proposal 2024-2026
The government expects Apple to increase the value of their investment to be in line with the principles of fairness that have been established.
According to Agus, an official email has been sent to Apple to invite them to conduct further discussions in Indonesia.
How does Apple Compare to Other HKT Manufacturers?
Apple is not the only tech device manufacturer facing TKDN requirements in Indonesia. Other manufacturers, such as Samsung, Oppo, and Xiaomi, have long invested in Indonesia through factory construction and local employment.
For example:
- Samsung has production facilities in Indonesia that produce various devices, including smartphones.
- Oppo and Xiaomi have met the TKDN requirement by locally manufacturing some of their models.
These measures not only ease access to the Indonesian market but also make a real contribution to the national economy.
Apple's Investment in Indonesia: Expectations and Challenges
The obstacles faced by Apple in fulfilling the TKDN requirement opens a wider discussion on the importance of balanced foreign investment. As one of the largest technology companies in the world, Apple's presence in Indonesia is expected to bring great benefits, such as:
- Improving technology transfer through cooperation with local partners.
- Creating new jobs that are of high quality.
- Increase the added value of local industries by involving domestic component manufacturers.
However, the main challenge for Apple is to adapt their business model to local regulations, including the TKDN requirement.
Takeaway: What Should Apple Do?
To ensure attendance iPhone 16 in IndonesiaApple must solve two major problems immediately:
- Repaid the USD 10 million shortfall in investment.
- Revise the 2024-2026 investment proposal to meet the principle of equity.
This move will not only pave the way for the iPhone 16 but also strengthen Apple's position in the Indonesian market. With the huge potential that the Indonesian market holds, greater investment will provide long-term benefits for both Apple and local consumers.
Advice for Consumers: If iPhone 16 Isn't Officially Present
While waiting for clarity on the TKDN permit, consumers can continue to utilize other Apple products that are officially available in Indonesia. If your device requires repair or service, please do not hesitate to contact Candra Apple Solution, a trusted service for all your Apple needs.
For those of you who want to keep up with the latest developments in Apple technology, don't forget to join the Facebook and Telegram groups CapsPoint. There, you can discuss, get tips, and other interesting information.