Wondering Why No New Apple Products Released in Indonesia?

It has been 9 months since the release of the iPhone 6S and iPhone 6S Plus but none of these Apple products have yet to be available for sale in Indonesia as of the date of this article.

To be put simply, these Apple products are still being impeded from entering Indonesia because of a regulation introduced by the government in mid-2015 on the domestic component level of 4G LTE devices (“Regulation”).[1]

According to this Regulation, all 4G LTE devices to be lawfully distributed and used in Indonesia must fulfil a domestic component level of at least 20 percent, which will be increased to 30 percent in 2017.[2] This means that at least 20 percent (or 30 percent in 2017) of the raw materials, production equipment, and human resources used to make a 4G LTE device must be from or made in Indonesia.[3]

According to news sources, Apple has yet to be agreeable upon this requirement and is currently undergoing negotiations with the Indonesian government to be provided with another to option for the domestic component level of 4G LTE devices.[4]

An option being discussed is the separation between hardware and software; a 4G LTE device will must have either the following percentages for its domestic component level:[5]

  1. 100 percent for its hardware and 0 percent for its software;
  2. 75 percent for its hardware and 25 percent for its software;
  3. 50 percent for its hardware and 50 percent for its software;
  4. 25 percent for its hardware and 75 percent for its software;
  5. 0 percent for its hardware and 100 percent for its software;

Until Apple decides to fulfil the obligated domestic component level for 4G LTE devices or there is a change to the domestic component level rules that is more agreeable for Apple, we will not be able to purchase new Apple products through authorized resellers in Indonesia.

 


FOOTNOTES

[1] Minister of Communication and Informatics Regulation No. 27 of 2015 regarding Technical Requirements of Telecommunication Equipment and/or Devices Based on Long Term Evolution Technology Standard

[2] Regulation, Art. 4 (1) and (3)

[3] Articles 5 and 11 of Minister of Industry Regulation No. 68/M-IND/PER/8/2015 regarding Provisions and Procedures in Calculating Domestic Component Level of Electronic and Telematics Products

[4] Gadgetgan, “iPhone 6S (Harusnya) Terganjal TKDN,” 29 February 2016

[5] Kompas.com, “Aturan Baru TKDN Beri Jalan iPhone 6S Masuk Indonesia?” 16 June 2016


PHOTO CREDITS

Featured image by Adam Patrick Murray.


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