DIGIVESTASI - Government Takes Firm Action, Apple Faces Potential Ban on Selling Products in Indonesia Without Investment, After years of operating freely in Indonesia, Apple is now facing strict action from the government. The U.S. tech giant generated sales worth IDR 30 trillion in 2023 from products such as phones, tablets, laptops, and accessories in Indonesia, but its promised investment has yet to materialize.

Minister of Industry, Agus Gumiwang Kartasasmita, stated that with such significant profits, Apple should have already started making substantial investments in Indonesia. However, even the IDR 300 billion investment promised by Apple has not been realized.

"According to surveys, there is a shortfall in the required investment, and the amount is less than IDR 300 billion. For a company of that size, this amount is small," Agus said during a meeting with Commission VII of the Indonesian Parliament, broadcasted live on Wednesday, November 13, 2024.

In response to Apple's lack of commitment in meeting the Domestic Component Level (TKDN) requirements, the government has decided to ban the sale of Apple's latest product, the iPhone 16, in Indonesia.

"Apple's sales in Indonesia in 2023, just for HKT (handphone, computer, tablet) products alone, exceeded IDR 30 trillion. This is why we will negotiate for an increase in TKDN compliance," Agus asserted.

Apple Offers IDR 157 Billion Investment

Previously, the Ministry of Industry received information that Apple plans to build a factory for accessories and device components in Indonesia, but they have only offered an investment of US$10 million or around IDR 157 billion.

Deputy Minister of Industry, Faisol Riza, explained that while Apple has shown interest in investing, the commitment is still considered weak. "We have communicated with them, but the plans still need further discussion," Faisol said when met in Jakarta on November 6, 2024.

Faisol added that the government hopes Apple will soon realize this new commitment, as the previous investment offer was deemed insufficient.

A Bloomberg report mentioned that Apple plans to build a factory in Bandung through a local partner to produce accessories and device components, although specific details regarding the products to be manufactured have not been disclosed.

TKDN Regulations and Product Restrictions

The government’s move to tighten TKDN regulations is also a key reason behind Apple’s consideration to build a local production facility. Trade Minister Budi Santoso stated that e-commerce platforms selling the iPhone 16 and Google Pixel would face action, as these products have not met the local component requirements and lack distribution permits.

Apple's efforts to build an accessory and component factory in Indonesia are expected to help the company comply with the TKDN regulations, allowing their products, including the iPhone 16, to be officially sold in the Indonesian market.

With regulatory pressure and potential sales bans, the government hopes Apple will soon invest in accordance with the scale of its business in Indonesia.

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