INDONESIAUPDATES.COM, News En – South Korea’s Samsung Electronics is strengthening its foothold in the Indonesian smartphone market with the launch of the Galaxy S25 Series, capitalizing on Apple’s continued absence due to regulatory hurdles.
The iPhone 16 series, which was globally released in September 2024, remains unavailable in Indonesia as Apple has failed to meet the country’s local component requirements (TKDN). Meanwhile, Samsung’s latest flagship models—comprising the Galaxy S25 Ultra, Galaxy S25+, and Galaxy S25—were unveiled at the global Galaxy Unpacked 2025 event on Thursday and are now available for pre-order in Indonesia. These devices meet the nation’s 37.5 percent local component requirement, surpassing the 35 percent threshold mandated by the government.
Samsung’s Competitive Advantage
Samsung Indonesia’s Head of MX Business, Lo Khing Seng, highlighted the company’s commitment to the Indonesian market, emphasizing its compliance with local regulations.
“Since establishing our smartphone factory in Cikarang, West Java, in 2015, we have shown our confidence in Indonesia’s industry and business climate. With the Galaxy S25 Series, which achieves a 37.5 percent local component level, we’re offering innovation tailored to Indonesian consumers,” Lo said on Thursday.
While Lo did not directly reference Apple, his remarks on meeting local content requirements are widely seen as a subtle jab at Apple’s ongoing struggles to comply with Indonesia’s TKDN regulations.
Apple’s Regulatory Hurdles
Under Indonesia’s Communications Ministry Regulation No. 13/2021, electronic products sold in the country must incorporate at least 35 percent locally sourced components. Apple’s failure to meet this requirement has left its latest devices unavailable in the Indonesian market.
Apple had previously announced plans to invest $1 billion in an AirTag manufacturing plant on Batam Island, a move that was expected to help it comply with TKDN regulations. However, an assessment by the Industry Ministry found that Apple’s actual investment stood at just $200 million—far below the initial commitment.
“Based on our technical assessment, the investment value for Apple’s AirTag factory in Batam is only $200 million, far below the $1 billion commitment outlined in the proposal submitted to us,” said Febri Hendri Antoni Arif, spokesperson for the Industry Ministry, on Wednesday.
Despite Apple’s absence, its popularity remains strong in Indonesia. According to Industry Minister Agus Gumiwang Kartasasmita, Apple recorded over Rp 30 trillion in sales in Indonesia in 2023. However, the company’s inability to meet local requirements continues to create an opportunity for Samsung to dominate the high-end smartphone market.
Samsung’s Economic Contributions
Samsung has leveraged its strong presence in Indonesia not only through manufacturing but also in talent development. Since 2018, Samsung’s Indonesian operations have exported locally assembled devices to various ASEAN countries, with a total of 1.56 million units shipped in 2024.
Additionally, the company has invested in local software and application development through its Samsung Research Institute Indonesia (SRIN), further embedding itself in the country’s technology ecosystem.
As Samsung strengthens its market position, Apple faces mounting pressure to find a solution that will allow its latest products to enter one of Southeast Asia’s largest smartphone markets.
Frequently Asked Questions (FAQ)
1. Why is Apple unable to sell the iPhone 16 series in Indonesia?
Apple has not met Indonesia’s local component requirement (TKDN), which mandates that 35 percent of a device’s components be locally sourced.
2. What is the TKDN regulation?
TKDN (Tingkat Komponen Dalam Negeri) is a regulation requiring electronic products sold in Indonesia to have a minimum percentage of locally sourced components, currently set at 35 percent.
3. How has Samsung complied with TKDN regulations?
Samsung’s Galaxy S25 Series meets a 37.5 percent local component level, surpassing the required 35 percent, allowing its devices to be sold in Indonesia.
4. What is Samsung’s presence in Indonesia?
Samsung has operated a smartphone factory in Cikarang, West Java, since 2015 and has been exporting locally assembled devices to ASEAN markets since 2018.
5. Did Apple invest in Indonesia?
Apple initially pledged a $1 billion investment in an AirTag manufacturing plant in Batam but only invested $200 million, falling short of the requirement to qualify for TKDN compliance.
6. Is Apple still popular in Indonesia?
Yes, despite its absence in the local smartphone market, Apple recorded over Rp 30 trillion in sales in Indonesia in 2023.
7. What is Samsung Research Institute Indonesia (SRIN)?
SRIN is a division of Samsung focused on software and application development, contributing to Indonesia’s technology ecosystem.
8. Will Apple eventually enter the Indonesian smartphone market?
Apple will need to either increase its local investment or find an alternative way to meet TKDN regulations before its latest products can be sold in Indonesia.
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