As global tech companies continue to expand into Southeast Asia, they are met with a unique set of challenges—particularly around local regulations that prioritise investment and domestic production.
While these regulations aim to boost local economies, they often slow down the entry of new products, creating delays for consumers eagerly awaiting the latest releases.
A recent example can be seen in Indonesia, where Apple’s launch of the iPhone 16 has been delayed due to unmet investment commitments.
According to Indonesia’s Industry Minister, Agus Gumiwang Kartasasmita, Apple has not yet fulfilled the required Rp235 billion investment, which is necessary to obtain the Tingkat Komponen Dalam Negeri (TKDN) certificate needed to sell their products in the country.
Apple’s investment shortfall stalls iPhone 16 launch
Apple’s TKDN certificate, which validates the use of local components in their products, has expired. The renewal of this certificate hinges on Apple meeting its investment obligations.
Currently, the company has invested Rp1.48 trillion (RM406 million), falling short of the Rp1.71 trillion (RM469 million) required. This shortfall has put the certification process on hold, as explained by Minister Agus during a recent meeting in Jakarta on October 8, 2024.
Once Apple fullfills its total investment commitment, it will qualify for a 40 percent TKDN value, allowing them to introduce the iPhone 16 and other mobile devices to the Indonesian market.
Indonesia’s complex regulatory landscape
Indonesia’s Ministry of Industry Regulation Number 29 of 2017 sets the groundwork for obtaining TKDN certification, requiring companies to invest in one of three areas: producing products domestically, developing local applications, or fostering innovation.
Apple has chosen the innovation development path but is currently behind schedule in meeting the necessary requirements.
Malaysia emerges as a tech heaven
While Indonesia grapples with these regulatory hurdles, Malaysia is becoming a favoured destination for tech-savvy consumers.
With a more relaxed approach to product imports, Malaysia has seen smoother access to the latest technology, including the iPhone 16.
This situation presents an opportunity for Malaysian retailers to attract Indonesian consumers who may be eager to purchase the latest devices before they are officially released in Indonesia.
