Ministry Of Industry Will Revise TKDN Rules Imbas Apple Can Sell IPhones Without Opening Factory

Spokesperson for the Ministry of Industry Febri Hendri Antoni Arif (Photo: Theresia Agatha/VOI)

JAKARTA - The Ministry of Industry (Kemenperin) will change the rules for the Domestic Component Level (TKDN) of HP products that Apple has been using to sell iPhones without opening factories in Indonesia.

Spokesperson for the Ministry of Industry, Febri Hendri Antoni Arif, said that his party was considering changing the TKDN rules because the domestic industrial structure had now changed.

"We are considering reviewing the Minister of Industry Regulation Number 29/2017 which regulates 3 investment schemes in fulfilling the TKDN requirements for the HKT (mobile phone, handheld computer and tablet) industry," Febri said at a press conference at his office, Thursday, November 21.

Febri explained that the regulation currently provides three schemes for HP producing companies to obtain TKDN, namely manufacturing schemes, applications and innovations. However, the scheme is considered to have to be adjusted to the current condition of the Indonesian industry.

"We consider that there has been a change in the structure of the domestic industry, a shift in the domestic structure. So, the Permenperin must adapt to the current needs," he said.

According to Febri, the change in the industrial structure is the reason Apple is now encouraged to start working with domestic industries. Thus, it can be integrated with the supply chain of its products, such as the iPhone, Macbook and iPad.

"And that's the reason then the Minister (Agus Gumiwang Kartasasmita) hopes that Apple will start working with the domestic industry to try to integrate the domestic industry with Apple's global value chain," he said.

The Ministry of Industry stated that Apple is totally committed to investment of IDR 1.71 trillion in Indonesia and the last commitment should be given in 2023.

However, until now, Apple Inc has not paid off its investment obligations, which amounted to Rp271 billion. Thus, the sale of the iPhone 16 cannot be done at this time.