iPhone 16 Sales Delayed by Apple's Investment Commitment in Indonesia

Jakarta - The iPhone 16, which was launched by Apple on September 9, 2024, has not yet entered the Indonesian market. This delay is primarily due to Apple's failure to fulfill its investment commitment in Indonesia, which is necessary to meet the domestic component level requirement (TKDN) of 40%.

Apple has made efforts to ensure that the iPhone 16 can be sold in Indonesia. Previously, the company proposed a new investment of approximately US$ 100 million or around Rp 1.58 trillion over two years. However, the Indonesian government has requested that Apple commits to an investment of US$ 1 billion or approximately Rp 15.8 trillion.

Vice Minister of Industry Faisol Riza indicated that discussions regarding Apple’s investment plans in Indonesia should ideally be concluded before the end of 2024. "We hope that these discussions can be resolved soon. It is our hope that they will be completed by the end of this year," Faisol mentioned in a recent statement.

On another front, thousands of iPhone 16 units have entered Indonesia through passengers' baggage. While these devices have been imported legally after paying taxes, selling them in the country would render them illegal.

Heru Sutadi, a member of the National Consumer Protection Agency (BPKN), emphasized that Apple must adhere to local regulations if it wishes to sell its products in Indonesia. This is fundamentally aimed at protecting consumers. He stated that Apple, as a mobile phone provider, is required to follow the local regulations, including Law No. 8 of 1999 on Consumer Protection, which aims to preserve consumer rights.

"Apple must comply with the Consumer Protection Law to create an equal playing field for all," said Heru Sutadi during a discussion at the Cellular Business Forum in Jakarta.

Moreover, the ongoing stalemate in the negotiations between Apple and the government regarding the investment plan might negatively impact consumers. For instance, consumers who purchase an iPhone 16 abroad may find that the device is unusable upon arrival in Indonesia.

If Apple obtains permission to market its products in Indonesia, the complaint process would be more straightforward, and customers could trust that their devices would work properly. "The iPhone 16 that is not yet allowed to enter the market may lead to illegal actions, such as fraud, since some may encounter fake IMEI (International Mobile Equipment Identity) numbers. Devices bought abroad might turn out to be unusable upon arrival in Indonesia," Heru explained.

From an economic perspective, Teuku Riefky, an economist at the Economic and Social Research Institute of the Faculty of Economics and Business at the University of Indonesia (LPEM FEB UI), highlighted various regulations and obstacles that could hinder investment in Indonesia. Key challenges include labor sector issues, innovation barriers, financing difficulties, legal uncertainties, and corruption levels. He believes these obstacles need swift resolution to attract potential investors.

"Apple will invest in a country only if they perceive a benefit," Riefky commented regarding the prolonged discussions on Apple's investment plans in Indonesia.

Apple's Investment in Indonesia

This section would typically discuss the potential areas for Apple's investment in Indonesia and the benefits it may bring to the local economy.

iPhone 16 Sales in Indonesia

This section would elaborate on the implications of delayed sales for the iPhone 16, including consumer interest and market reactions.

Investment Value of Apple in Indonesia

This section could cover the projected economic impact of Apple's proposed investment amount on the Indonesian market.

iPhone, Apple, Investment