Tech News – The Ministry of Industry has confirmed that the iPhone 16 will not be sold in Indonesia for the time being. This decision comes after Apple’s latest proposal for a third scheme investment in establishing an academy was rejected, despite its substantial value of IDR 1.4 trillion.
According to Febri Hendri Antoni Arief, Spokesperson for the Ministry of Industry, the proposed investment value was not fully allocated to the third scheme due to the inclusion of additional costs.
According to our analysis of Apple’s IDR 1.4 trillion expenditure from 2020 to 2023, we have identified significant intangible costs that are inflating the overall investment value,” said Febri Hendri Antoni Arief, Spokesperson for the Ministry of Industry, on Thursday.
He explained that the inclusion of unrelated costs, such as operational expenses, is undermining the authenticity of Apple’s proposed investment. “For instance, their reports include expenditures on tangible items like air conditioning units, building rentals, and equipment purchases. However, they also claim significant intangible costs, which are not transparent and appear to be substantial.
When queried by CNBC Indonesia about potential operational costs incurred by Apple in Indonesia, Febri Hendri Antoni Arief offered a cryptic response, neither confirming nor denying the allegations.
A hint of amusement was evident as he replied, “For instance, there may be expenses unrelated to training or education at the Apple Academy, or operational costs that aren’t directly tied to the academy but are nonetheless being charged to it.
The Indonesian government has given Apple the flexibility to resubmit its proposal without a deadline, and the same freedom applies to scheduling the next meeting. However, the government is still waiting for Apple’s revised proposal to issue the necessary TKDN certificate, which is required for the product identification mark TPP.¹
As Febri explained, the process goes like this: TKDN Certificate, which confirms that the product meets local content requirements, TPP, which is the product identification mark, and finally, Importation. Without the TPP, Apple cannot import the iPhone 16 into Indonesia, which means the ban on sales remains in place.
The ban was initially imposed due to Apple’s failure to meet its investment commitments in Indonesia, specifically a $109 million investment in local sourcing and infrastructure. Apple has invested around $94 million, falling short of the required amount.
“Until now, because we have not received the revised proposal, we have not been able to issue the TKDN certificate, because TKDN is a requirement of TPP, a product identification mark, so we also cannot issue TPP, if there is no TPP, then Apple cannot import the iPhone 16 to Indonesia. So TKDN first, TPP then they import, meaning overall we have not lifted the ban on the sale of the iPhone 16 in Indonesia,” said Febri.