The debt arises from Apple's investment commitment to extend the certification of the domestic component level (TKDN) of its products for the 2020–2023 period.
He said that the sanctions are outlined in Article 59 of the Industry Minister's Regulation Number 29 of 2017 concerning Provisions and Procedures for Calculating TKDN, and include the revocation of the TKDN value.
"The regulation said the sanction can be in the form of TKDN value revocation," Kartasasmita said on Wednesday.
Considering that Apple is seeking to extend its TKDN certification through an innovation scheme, it should conduct research and development on innovations in the information technology field, the minister said.
However, since 2017–2023, or for almost seven years, the company, through Apple Academy, has only carried out education and training activities, which have not included research and development.
Therefore, his party is encouraging Apple to set up a research and development (RnD) facility in Indonesia.
During negotiations on Tuesday, Apple committed to paying the remaining debt, while the ministry said it would appoint a third party to assess the debt repayment documents, Kartasasmita disclosed.
The ministry did not set a time limit for negotiations on the extension of TKDN certification with Apple because it is prioritizing the fulfillment of the substance being negotiated.
Earlier, Kartasasmita said that Apple's investment commitment to open an AirTag production facility in Batam would not help its newest product, the iPhone 16, to enter the domestic market.
This is because Apple's investment is not directly related to the manufacturing process of mobile phones, handheld computers, and tablets (HKT), which is required for obtaining TKDN certification.
The government also snubbed Apple's earlier US$100 million investment proposal as it was not considered proportional to its sales in Indonesia.
Related news: Apple's AirTag investment will not secure iPhone 16 entry: RI Govt
Related news: Apple to build AirTag factory in Indonesia: govt
Translator: Ahmad Muzdaffar, Resinta Sulistiyandari
Editor: Aditya Eko Sigit Wicaksono
Copyright © ANTARA 2025
