This payment represents the remaining balance of Apple's investment commitment required to obtain a domestic component level certificate (TKDN) for the 2020-2023 period.
"The debt has been paid, and we had received the payment," he stated when met in Jakarta on Wednesday.
The Ministry of Industry explained that during this period, Apple's investments did not fully comply with the requirements outlined in Minister of Industry Regulation No. 29 of 2017, which permits Apple to market its products in Indonesia.
According to the ministry, Apple has acknowledged and confirmed its remaining investment commitment debt of US$10 million for the 2020-2023 period, due in June 2023.
Based on the stated regulations, non-compliance can result in Apple being subject to sanctions in the form of additional new investment capital requirements, suspension of TKDN certificates, and even revocation of TKDN certificates, potentially leading to a ban on Apple product sales in the country.
Among the three sanctions, the Ministry of Industry chose the lightest sanction: the addition of an investment capital scheme in the 2024-2026 proposal period. During negotiations with Apple, this sanction was also communicated in the Ministry of Industry's early counter-proposal.
To realize the debt repayment commitment, Indonesia has appointed a third party to assess the debt repayment documents and will conduct an audit of all Apple Academies.
From 2018 to 2023, Indonesia assessed that Apple's compliance with the TKDN extension innovation scheme was insufficient.
Apple is currently constructing an AirTag factory in Indonesia, which is expected to fulfill 65 percent of the global AirTag demand.
This factory investment amounts to US$1 billion and has the potential to generate employment for up to two thousand people. The investment will continue to be pushed until it reaches US$10 billion.
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Translator: Ahmad Muzdaffar, Resinta Sulistiyandari
Editor: Primayanti
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