Indonesia Still Prohibits Sale of iPhone 16; Expert: To Encourage Apple Investment in the Country

1 week ago 8

November 6, 2024 | 01:43 pm

TEMPO.CO, Jakarta - Amid the resurfacing news of Apple requesting a tax holiday or a 50-year tax concession, Minister of Trade Budi Santoso emphasized that the government would take action against e-commerce platforms that daringly sell iPhone 16 and Google Pixel because both sophisticated mobile phones do not have permission for sales here.

"E-commerce is always being evaluated, if there are violations, of course, we will inform them, so we take enforcement and all kinds of measures," said Budi during the dispatch of Mayora Group's 400,000th export container to 15 countries in Cikupa, Tangerang, Banten, on Tuesday, November 5, 2024.

The Ministry of Trade prohibits online shopping platforms from selling the iPhone 16 and Google Pixel smartphones produced by Alphabet because they have not met the Domestic Component Level (TKDN) usage rules.

Furthermore, Budi also stated that the Ministry of Trade will deploy a team if anyone sells the iPhone 16 or Google Pixel.

The iPhone 16 products are considered to have entered Indonesia, but they are brought by passengers, flight crews, or sent through courier services. These items are not allowed for resale.

"The iPhone 16 series brought by passengers and subject to tax are personal belongings that cannot be sold and are limited to the personal use of the individual," said the Ministry of Industry's Spokesperson Febri Hendri Antoni Arif.

Febri said that Apple has sent a letter to the Minister of Industry, Agus Gumiwang Kartasasmita for an audience on this matter.

Chair of the National Economic Council Luhut Binsar Pandjaitan talked about the prohibition of selling Apple products, iPhone 16 in Indonesia.

"We are very open to everything. Especially if it is produced domestically because we want to create jobs," said Luhut at the Presidential Palace in Jakarta on Tuesday.

He mentioned that Indonesia not only wants to discuss high technology but also labor-intensive industries. "So like the current garment industry, construction in Kertajati, and also near Solo there," explained Luhut.

Economist: Prohibition of iPhone 16 Sales Will Encourage Apple Investment in Indonesia

Executive Director of the Institute for Development of Economics and Finance (Indef) Esther Sri Astuti believes that by prohibiting the sale of iPhone 16 in Indonesia, it will directly attract the giant company Apple to build its factory in the country.

According to Esther, Indonesia has a large demographic strength and is a promising market for the American company.

"As long as the government is consistent, once banned, it should not happen through back channels," she said.

She added that if the government consistently enforces this policy until Apple builds its factory in Indonesia, it will have a sustainable positive impact on the advancement of the domestic industry.

Such as attracting other investors in the electronic supporting sector, thereby creating more job opportunities. "So if Apple can invest in Indonesia, I believe its supporting industry will also join," she said.

The Ministry of Industry will deactivate the International Mobile Equipment Identity (IMEI) serial numbers for iPhone 16 products proven to be sold domestically.

The latest series from the giant company Apple cannot enter the domestic market, considering the unresolved investment commitments, thus not meeting the Domestic Component Level (TKDN) certificate as a mandatory requirement for selling in Indonesia.

To obtain this certificate, Apple must invest through three schemes, namely manufacturing plant construction, innovation, or through application development schemes.

Previously, Apple had committed to investing in Indonesia through innovation by establishing its fourth Apple Academy in Indonesia, with an investment value of Rp1.71 trillion.

From this commitment, the Ministry of Industry stated that Apple has only realized an investment of Rp1.48 trillion, still lacking about Rp240 billion.

Editor's Choice: Apple Requests Audience with Indonesia's Industry Minister Amid iPhone 16 Entry Ban

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