Apple Settles US$10 Million Investment Debt to the Indonesian Government

The U.S. tech giant Apple has officially settled its investment debt of US$10 million, equivalent to Rp163.6 billion (exchange rate Rp16,360), to the Indonesian government. The confirmation came directly from Minister of Industry Agus Gumiwang Kartasasmita.

"It's paid, we've received it," Agus said in Jakarta, as quoted by Antara on Thursday (February 20, 2025).

Investment Debt Related to TKDN Certification

The debt was linked to Apple's investment realization in securing Tingkat Komponen Dalam Negeri (TKDN) certification between 2020 and 2023. Previously, the Ministry of Industry (Kemenperin) stated that Apple’s investment during this period did not fully comply with the Minister of Industry Regulation No. 29 of 2017, which facilitated Apple's ability to sell its products in Indonesia.

Apple admitted that it still had an outstanding investment commitment of US$10 million, which was due in June 2023.

According to the existing regulations, non-compliance could result in several sanctions, including:

1. Mandatory additional investment,
2. Freezing of the TKDN certification, or
3. Revocation of the TKDN certification, which would prevent Apple products from being sold in Indonesia.

However, Kemenperin opted for the lightest sanction, requiring additional investment in the 2024-2026 proposal period. This sanction was also communicated in Kemenperin’s counterproposal during negotiations with Apple.

To ensure that the debt payment was properly executed, Indonesia appointed a third party to assess the debt settlement documents and plans to audit all Apple Academy locations in the country.

From 2018 to 2023, the Indonesian government observed that Apple had not been fully compliant in implementing the TKDN extension innovation scheme, prompting increased monitoring for the upcoming period.

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