Why is the iPhone still expensive in Indonesia even though the import duty is 0%?
Causes of iPhone Prices Still High Even though Import Duties are Abolished
The elimination of import duties or 0 percent tariffs on products from the United States, including the iPhone, had sparked hopes of a decline in the price of smartphones from Apple in Indonesia. But in fact, the price of the iPhone in the local market is still high. This raises the question: why doesn’t the price of the iPhone go down even though the policy is enforced?
iPhone distribution is not from the US
In theory, the elimination of import duties can reduce the selling price of imported products. However, this only applies if the product is sent directly from its home country, namely the United States. In fact, most of the iPhones sold in Indonesia come from Apple production factories in China or India. Therefore, the iPhone is still subject to import tariffs according to the country of origin.
As a result, even though the 0 percent import duty policy applies, the impact on the iPhone’s price is almost imperceptible. This shows that the elimination of import duties alone is not enough to lower prices significantly.
Taxes and additional costs are the main burden
In addition to import duties, there are several other cost components that also affect the final price of an iPhone. For example, Value Added Tax (VAT), Income Tax (PPh), distribution costs, and distributor profit margins. Without the removal of these components, the iPhone’s selling price remains high.
For example, the iPhone 15 Pro Max is officially sold starting from Rp. 20 million. This price already includes various costs, so that even though the import duty is abolished, the effect on the selling price is only a small part.
Apple Price Strategy
Apple is known to have a globally consistent pricing strategy. These companies rarely adjust prices based on changes in local regulations or fluctuations in distribution costs. Apple’s main focus is maintaining the profit margins and premium brand perceptions.
On the other hand, the government is designing easing the rules for the domestic component level (TKDN) for the next generation of products such as the iPhone 17. Farah Fausa Winarsih, Head of Marketing Apple Product at PT MAP Zone Adiperkasa (Digimap), welcomed this plan.
“This could be a breath of fresh air. When I heard the news, I immediately smiled broadly, immediately prostrated thanks, Alhamdulillah,” he said. “Hopefully there will be a new policy, so that sales or the technology industry in Indonesia can develop faster.”
He hopes that this policy will accelerate the development of the technology industry in Indonesia and open up space for price adjustments in the future.
cooperation with the government
Minister of Industry Agus Gumiwang Kartasasmita has signed a memorandum of understanding (MoU) with Apple regarding an investment of USD 160 million. This collaboration is expected to boost the added value of the Indonesian economy in the long term.
With this collaboration, it is hoped that the technology industry in Indonesia will continue to grow, and provide benefits for the wider community. However, to achieve this, synergy is needed between the government, industry, and other stakeholders.
