Understanding TKDN: Indonesia’s Commitment to Local Industry Growth
TKDN, an acronym for Tingkat Kandungan Dalam Negeri (Domestic Content Level), mandates that any product sold in Indonesia must contain a specified percentage of domestically sourced components or value-added processes. This requirement is not limited to the tech industry—it’s enforced across various sectors, including healthcare equipment and agricultural machinery. For the smartphone industry, the TKDN threshold currently stands at 35%, meaning at least one-third of the product must be locally sourced or assembled.
Indonesia’s government initially introduced TKDN to curb the influx of black-market products, which had been detrimental to both the economy and consumer protection. Before the rule, products from brands like Xiaomi often entered the market illegally, circumventing taxes and lacking official warranties. These goods, sometimes available at a lower price point due to the absence of duties, undercut official distribution channels and left buyers without reliable after-sales support. With TKDN in place and the added EMEI regulation (device identity registration), black-market entries have substantially decreased, and local manufacturing has seen substantial growth.
Why Apple Stands Out Among Smartphone Manufacturers
Most smartphone brands operating in Indonesia comply with the TKDN requirements through localized assembly or production. For instance, companies like OPPO, Realme, and Samsung have established large-scale production facilities within the country, employing thousands of local workers and creating a robust domestic manufacturing base. Even brands without direct manufacturing plants, like Xiaomi, have partnered with local assembly firms, such as PT Satnusa in Batam, to fulfill TKDN mandates.
Apple, however, has opted for a different approach. Rather than building a factory or relying heavily on local assembly, Apple has pursued a path of “investment.” Through initiatives like the Apple Developer Academy, located in Jakarta, Surabaya, Batam, and Bali, Apple has contributed to Indonesia’s tech ecosystem by fostering local talent. The academy has trained over 2,000 aspiring developers, 90% of whom have gone on to secure employment across various sectors. This investment in human capital has allowed Apple to meet TKDN requirements in the past by demonstrating a commitment to Indonesia’s broader digital economy.
The Current Impasse: Apple’s Investment Shortfall
The current predicament surrounding the iPhone 16 centers on Apple’s commitment shortfall in investment. To release new products like the iPhone 16, Apple must increase its investment proportionally. Reports indicate that although Apple initially committed to investing IDR 1.71 trillion, the actual investment to date is IDR 1.48 trillion, leaving a gap of approximately IDR 240 billion. This deficit has led to the delay in the necessary SDPPI certification, rendering the iPhone 16 and iPhone 16 Pro unavailable for official sale.
While the investment shortfall may seem minor in the context of Apple’s cash reserves (estimated at USD 65 billion), the holdup has raised questions. Apple’s massive global market influence and financial capacity make the delay surprising to many. Some speculate that Apple is considering establishing an accessory manufacturing facility in Bandung, which could fulfill its remaining investment obligations. However, this potential move remains unconfirmed.
Implications for Apple and the Broader Market
This situation has broader implications for Indonesia’s regulatory policies and the competitive landscape of the tech industry. By enforcing TKDN rigorously, Indonesia demonstrates a commitment to a level playing field, ensuring all brands adhere to the same standards. Apple’s unique status in previous years—largely due to its reliance on investment over local manufacturing—has drawn attention. Many argue that if other brands can adhere to TKDN through significant local production efforts, Apple should be held to the same standards.
From a consumer perspective, Apple’s inability to officially release its latest products could disrupt its ecosystem’s appeal in Indonesia. Products like AirPods and Apple Watches are often optimized to work best within the Apple ecosystem, which centers on the iPhone. If the iPhone were unavailable in Indonesia, demand for other Apple products could decline, affecting Apple’s market presence and potentially encouraging the brand to expedite its compliance efforts.
A Test of Fairness and Economic Strategy
Indonesia’s stand on the TKDN policy, particularly in dealing with a global giant like Apple, has elicited varied responses. Some see it as a bold move, underscoring the government’s commitment to fair trade practices and local industry support. For other tech brands, this enforcement reassures them that their investments in local manufacturing, which include factory overheads and workforce management, are recognized and valued. Many believe that Apple is unlikely to withdraw from the Indonesian market, as the iPhone serves as the linchpin of Apple’s product ecosystem.
Indonesia’s TKDN requirement remains a vital regulatory tool that promotes industrial growth and supports local employment. While some may argue that Apple’s investment in local talent development is valuable, the policy insists on more direct contributions to the physical manufacturing economy. By standing firm, Indonesia reinforces the message that compliance is not optional, regardless of brand status.
In the end, this case illustrates the complexities of balancing foreign investment with local economic interests. It also demonstrates the challenges global companies face in adapting to country-specific regulations. How Apple navigates this requirement will not only influence its market prospects in Indonesia but also reflect on its approach to balancing global strategies with local compliance.
Conclusion
As the saga unfolds, Apple’s next steps will be closely watched by industry stakeholders and consumers alike. Whether the iPhone 16 and future models will officially enter the Indonesian market depends on Apple’s willingness to meet Indonesia’s stringent regulatory standards. For now, Indonesia’s stance highlights its commitment to supporting local industry while upholding the principle of fair competition in a globalized economy.
His release also ends a three-year drama of extradition between China and Canada, which Beijing has accused of strained relations between the two countries as "willing accomplices" of the US.
Immediately after the US dropped the extradition request for Meng, Canadian Prime Minister Justin Trudeau announced that two Canadian nationals, Michael Spavor and Michael Kovrig, who had been detained in China shortly after Meng's detention would also be released.
While the detentions were widely seen as an act of retaliation, both Beijing and Ottawa publicly linked the two cases on Friday.
Huang Jing, a professor at Beijing University of Language and Culture, said this was a political case and the reason for the settlement was a political compromise reached between China and the US.
"So the result will naturally have a positive effect on the trilateral relationship between China, the US and Canada," Huang Jing said, as reported by the South China Morning Post (SCMP).
The agreement reached between Meng and the US could signal that some room for cooperation between China and the US remains despite their bitter disagreements in recent years, Huang added.
"It also shows that instead of going head-to-head, the two countries are willing to communicate with each other on seemingly reciprocal issues," Huang added.
Song Luzheng, an international relations researcher at Fudan University in Shanghai, said Meng's return had erased one of the most controversial issues between China and the US, paving the way for further cooperation on other issues, including the removal of punitive tariffs imposed by Donald Trump last year. 2018.
Earlier, U.S. Trade Representative Katherine Tai said the White House was still conducting "a thorough strategic assessment of crafting a robust trade policy".
Business groups in the US have also called for the removal of tariffs they say are hurting the American economy. Song predicts that the door for talks "to remove or partially remove tariffs" will reopen soon, as early as the end of next month on the sidelines of the G20 summit, although it remains unclear whether Chinese President Xi Jinping will attend in person and meet the Chinese president. Xi Jinping and US President Joe Biden.
"The Biden administration's pro-trade and tariff exemptions are also not good for the US," Song said. "There is no such opportunity next year because of the midterm elections in the US."
But some observers expect competition between China and the US in other key areas, including technology and 5G, is likely to continue and even intensify.
A Beijing-based professor who declined to be named due to the sensitivity of the topic, noted that Meng's admission that she had "knowingly made false statements" would be used as evidence in another case in which the US government has indicted Huawei and its two companies. subsidiaries with federal racketeering and conspiracy to steal trade secrets from American companies.
"This could be a victory in one battle of the entire diplomatic war, but in the long term, I don't think the US will give up on containing China."
Song agreed, saying: “There are three main problems in Sino-US relations, which include the Meng case, 5G, and tariffs.
"While tariffs could be lifted, it is unlikely that the US will compromise on issues such as 5G and semiconductors."
Beijing is also cautious - while state media has touted Meng's release as the latest evidence of China's rise, there has been little mention of the release of the two Canadians.
Meanwhile, Chinese media have played up Meng's innocent plea, which the state-owned Global Times described as "maintaining the bottom line of justice" and "preserving the dignity" of Meng and Huawei.
"The results are also effective in upholding China's national dignity," said Song.
Translated from:
Countries that demand is mostly from Africa, America, China, and India.
"Demand began causing many oil stocks of grain thinning, and increased uptake of palm oil in biofuels program (B15)," said Fadhil Hasan, Executive Director of the Indonesian Palm Oil Association (GAPKI), Tuesday (11/10/2015).
Increased demand for palm oil is seen in bookkeeping rise in demand for palm oil from Indonesia in September and October.
Creative Bojez quoted from Anatarnews, Sunday (25/09/2016), file a lawsuit was filed in federal court in San Jose, California, by Ronald Schwartz, a resident of New York, on behalf of all users of Yahoo in the United States, whose personal information leaked.
He tried to take the case into a class action with losses that can not be predicted.
"It is appropriate orders of President Joko Widodo to improve the ranking of ease of doing business in Indonesia or the ease of doing business be in the range of 40 ratings from 109 ratings at this time," he said at the Ministry of Industry, Jakarta, Thursday (09/22/2016).
Google's strategic position could not be separated from the number of businesses owned portfolio, so the coffers of his money also flows from all directions. During 2015 alone, Google's revenue reached 75 billion US dollars, or Rp 987 trillion.
Masahiko Shibayama, special adviser to Prime Minister Abe said that the policy considerations to bring in more foreign workers to Japan could increase the number of foreign workers who are currently working in the country until doubled.
