Apple failed to invest the promised 1.71 trillion Rupiah, equivalent to 110 million USD, in Indonesia, causing the company to face administrative delays.

Recently, Indonesia’s delay in granting a license to sell the iPhone 16 in this country has caused a stir in public opinion.

Specifically, Apple planned to launch the iPhone 16 on September 10, 2024, but was forced to postpone it due to not being able to obtain a license from the Indonesian Ministry of Industry.

This delay mainly comes from Apple needing to renew the TKDN license granted by the Indonesian Ministry of Industry, but the failure to invest the full 1.71 trillion Rupiah, equivalent to 109.5 million USD as promised in this economy, causing the bitten apple to delay administrative procedures.

“Apple used to have this certificate but it has now expired,” said Industry Minister Agus Gumiwang Kartasasmita, adding that the ministry is waiting for the promised investment from “the bitten apple”.

For now, Apple has only disbursed 1.48 trillion Rupiah ($94.53 million) and is still short of 240 billion Rupiah to meet its commitment.

Protection or bureaucracy?

The delay in the iPhone 16’s launch in Indonesia is creating controversy on social media.

Indonesia’s TKDN license mainly targets whether a product’s components are made locally. According to regulations, products like Apple’s must have at least 40% of components made in Indonesia to be granted this certificate.

This move by Indonesia is creating mixed opinions as some people believe that Apple will not accept losses if it invests in Indonesia and the only ones who will suffer are customers and workers.

Instead of waiting domestically, iPhone stores in Malaysia and Singapore are often the favorite destinations for Apple traders in Indonesia. Apple products are launched here earlier and are often cheaper than waiting in Indonesia.

According to calculations, the total cost of bringing the cheapest iPhone 16 from Singapore to Indonesia, including taxes and mobile equipment identity (IMEI) registration fees, could be as high as 18 million Rupiah (US$1,155).

The cheapest iPhone 16 also costs 1,299 Singapore dollars, equivalent to US$994 in Singapore. However, buyers from Indonesia will have to pay an additional US$155 in import fees.

On the other hand, many people support the government’s strong policy to protect national interests.

Under the regulations, Apple can qualify for a TKDN license in Indonesia with one of three options: locally manufacturing devices, developing applications in Indonesia, or developing domestic innovation.

Apple has chosen the third option by building developer academies in Tangerang, Sidoarjo, and Batam.

During a visit to Indonesia in April this year, Apple CEO Tim Cook said he is planning to open a fourth academy in Bali.