Apple Settles $10 Million Debt with Indonesian Government, Minister Confirms
Jakarta, The Gulf Observer: Indonesian Minister of Industry Agus Gumiwang Kartasasmita has announced that U.S. technology giant Apple has settled a $10 million debt owed to the Indonesian government. The payment represents the outstanding balance of Apple’s investment commitment required to obtain a domestic component level certificate (TKDN) for the 2020-2023 period.
“The debt has been paid, and we have received the payment,” the minister confirmed during a meeting in Jakarta on Wednesday.
The Ministry of Industry explained that during this period, Apple’s investments did not fully comply with the requirements outlined in Minister of Industry Regulation No. 29 of 2017, which is necessary for Apple to market its products in Indonesia.
Apple acknowledged and confirmed its outstanding investment commitment debt, which was due in June 2023. Under the regulations, non-compliance could have led to sanctions, including additional investment requirements, suspension, or even revocation of the TKDN certificate, potentially barring Apple’s product sales in Indonesia.
Instead, the Ministry of Industry opted for the lightest sanction—requiring Apple to add investment capital under the 2024-2026 proposal period. This decision was communicated during negotiations as part of the ministry’s counter-proposal.
To ensure transparency, Indonesia appointed a third party to assess Apple’s debt repayment documents and will conduct an audit of all Apple Academies. From 2018 to 2023, the ministry found that Apple’s compliance with the TKDN extension innovation scheme was insufficient.
Apple is currently building an AirTag factory in Indonesia, expected to meet 65% of global AirTag demand. The factory, with an initial investment of $1 billion, is projected to create around 2,000 jobs. The investment is set to expand further, potentially reaching $10 billion.
