As we know, Apple has released  its new product globally, the iPhone 16. The iPhone 16 was launched last September. However, all types of new iPhone 16 products including iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max will not be allowed to sell smartphones in Indonesia due to several factors. 

Based on an official statement from the Ministry of Industry (Kemenperin), Apple has not completed its investment commitment in Indonesia to obtain the TKDN certification required for all electronic products marketed in Indonesia.

What is TKDN in Indonesia?

TKDN stands for Tingkat Komponen Dalam Negeri or Domestic Component Level, the minimum percentage of materials used that are produced or originated in Indonesia. This is the bare minimum of Indonesian-sourced capital goods, services, and raw materials that go into making a product. To proceed with an official sales permit, Apple must complete the remaining investment of Rp240 billion from a total promised commitment of Rp1.71 trillion.

Although it is not permitted to sell iPhones in Indonesia, consumers are allowed to keep them as personal items if they already own one. According to Article 35 of Government Regulation No. 46 of 2021, which pertains to Posts, Telecommunications, and Broadcasting, iPhones purchased by consumers or received through postal services are classified as non-commercial goods. These items are exempt from the TKDN requirement, provided that each person does not own more than two units.

It’s been discussed heavily in Indonesian media, that another reason Apple did not launch their new products in Indonesia was because the company requested a corporate tax exemption for 50 years to invest in the country. However, in Indonesia, the maximum duration for a request on tax holiday is only 20 years.

Indonesia has a long track record of using trade restrictions to encourage foreign companies to produce more domestically. In addition, the government has also tightened import rules for various products this year.

Basically, the TKDN Tingkat Komponen Dalam Negeri or Domestic Component Level, regulation is good and beneficial for Indonesia, because it forces foreign companies that want to do business in Indonesia to make investments that benefit the country, with these requirements it can increase foreign exchange and create jobs for the Indonesian people.

Many foreign investors are not familiar with this regulation, most of them rely on their law consultants and advisors in Indonesia. Their Indonesian Lawyers and/or advisors will make sure their business expansion in Indonesia is smooth and comply with all regulations and applicable law.

Do you think the regulation is beneficial for both parties? Or is it a hassle for consumers for getting their favored products?

Source:

https://fortune.com/asia/2024/10/28/apple-blocked-selling-iphone-16-models-in-indonesia/

https://www.liputan6.com/hot/read/5764889/iphone-16-dilarang-dijual-di-indonesia-ternyata-belum-penuhi-syarat-investasi?page=4  

https://www.detik.com/bali/bisnis/d-7622648/keterlaluan-apple-minta-pembebasan-pajak-50-tahun-di-indonesia
https://www.liputan6.com/hot/read/5774028/penjelasan-viralnya-apple-minta-tax-holiday-selama-50-tahun-bikin-dpr-ri-geram