Apple Inc. has fulfilled its $10 million USD (around Rp 163 billion) investment commitment to the Indonesian government. This payment covers Apple's outstanding investment debt for the 2020-2024 period.

Minister of Industry Agus Gumiwang Kartasasmita confirmed the payment, saying, "Yes, they have paid; we have received it. So, the $10 million has been settled," as quoted by Kompas.com in Jakarta (February 18, 2025).

The overdue investment previously blocked Apple's ability to obtain the Domestic Component Level (TKDN) certification from the Ministry of Industry—a requirement for selling the iPhone 16 in Indonesia. Without the TKDN certificate, iPhone 16 remains prohibited from entering the local market.

Following the payment, hopes have risen for the iPhone 16's official launch in Indonesia. Agus mentioned that Apple's team had met with the Ministry three times to discuss investment plans and TKDN compliance. "Pray that it happens soon. My target is to close the deal," Agus said.

In addition, Apple is reportedly considering building a factory in Indonesia. According to Nikkei Asia, Apple is in talks with suppliers about establishing a plant in the country. If realized, this move could help Apple meet TKDN requirements, which have been a major hurdle for iPhone 16 sales in Indonesia.

Previously, Apple announced a $1 billion USD (around Rp 15.95 trillion) investment to build an AirTag accessories factory in Batam. However, the Indonesian government clarified that this investment alone would not lift the sales ban since it is unrelated to iPhone production.

The Ministry of Industry noted that Apple's investment from 2020 to 2023 did not fully comply with Ministerial Regulation No. 29 of 2017, which allows Apple to sell its products in Indonesia. Due to this non-compliance, Apple was required to pay the outstanding $10 million debt, which was due in June 2023.

As a consequence, the Ministry imposed a penalty requiring Apple to boost its investment for the 2024-2026 period under a new scheme. This was presented in the Ministry's counter-proposal during negotiations with Apple. To ensure Apple's full compliance, Indonesia has appointed a third party to review the debt repayment documents and plans to audit all Apple Academy facilities.

PHOTO: PCMAG

This article was created with AI assistance.