TEMPO.CO, Jakarta - The removal of import duties on products from the United States, including iPhones, had raised hopes that prices for Apple's devices in Indonesia would drop. However, despite the promising-sounding 0% import duty policy, iPhone prices have remained high.
So, what exactly is preventing a drop in iPhone prices?
iPhone Distribution: Not Directly from the U.S.
In theory, the elimination of import duties should reduce the selling price of imported goods. However, this primarily applies when products are shipped directly from their country of origin, which, in this scenario, would be the United States.
The truth is, most iPhones sold in Indonesia are sourced from Apple's production facilities in China or India, not the U.S. Consequently, these iPhones are still subject to import tariffs based on their actual country of origin. This means that even with the U.S. import duty policy in place, its effect on iPhone pricing is almost negligible for the Indonesian market.
Taxes and Additional Costs: the Main Financial Burden
As reported by the iFixied website, in addition to import duties, several other cost components contribute to the final price of an iPhone. These include Value-Added Tax (VAT), Income Tax (PPh), distribution expenses, and distributor profit margins. Without the elimination of these substantial components, the retail price remains elevated.
For instance, the iPhone 15 Pro Max officially starts at approximately Rp20 million. This price already incorporates various cost burdens. Therefore, even if import duties were completely abolished, their impact on the overall selling price would only be a minor adjustment.
Apple's Global Pricing Strategy
Apple is renowned for its consistent global pricing strategy, rarely adjusting prices based on local regulations or fluctuations in distribution costs. Apple's primary focus is on maintaining its profit margins and upholding its premium brand perception.
On a related note, the Indonesian government is discussing the relaxation of Domestic Component Level (TKDN) regulations, especially for upcoming products like the iPhone 17.
Farah Fausa Winarsih, Head of Marketing for Apple Products at PT MAP Zona Adiperkasa (Digimap), has welcomed this potential change. "This could be a breath of fresh air. When I heard the news, I immediately smiled broadly, and thanked God. I hope that with a new policy, it will help accelerate the sales or the development of the technology industry in Indonesia," she said.
Farah expressed optimism that such a policy could boost Indonesia's technology sector and potentially allow for future price adjustments.
Furthermore, Minister of Industry Agus Gumiwang Kartasasmita has signed a memorandum of understanding (MoU) with Apple regarding a US$160 million investment. This collaboration is expected to provide substantial long-term economic added value for Indonesia.
Dicky Kurniawan MP contributed to the report.
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