Jakarta. South Korea's Samsung Electronics is gaining ground in the Indonesian smartphone market with the launch of its Galaxy S25 Series, capitalizing on Apple's absence in the country. The iPhone 16 series, launched globally last September, remains unavailable in Indonesia due to its failure to meet the nation’s local component requirements (TKDN).

Samsung unveiled the Galaxy S25 Series—comprising the Galaxy S25 Ultra, Galaxy S25+, and Galaxy S25—at the global Galaxy Unpacked 2025 event on Thursday. Indonesian consumers can now pre-order the devices, which meet the 37.5 percent local component requirement, exceeding the government-mandated threshold of 35 percent.

"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," said Lo Khing Seng, Head of MX Business at Samsung Electronics Indonesia, on Thursday.

While Lo did not mention Apple, his remarks on meeting local content requirements are seen as a jab at Apple's struggle to comply with Indonesia's regulations.

According to Lo, Samsung’s Indonesian operations contribute significantly to the nation’s economy. Since 2018, the company has exported its locally manufactured devices to various ASEAN countries, with a total of 1.56 million units shipped in 2024. Beyond manufacturing, Samsung supports local talent development through its Samsung Research Institute Indonesia (SRIN), which focuses on software and application development.

Meanwhile, Apple remains on the sidelines. Indonesia's local component regulation—outlined in Communications Ministry Regulation No. 13/2021—requires technology products sold in the country to incorporate at least 35 percent locally sourced components. 

Although Apple initially announced plans to invest $1 billion in an AirTag manufacturing plant on Batam Island, an assessment by the Industry Ministry revealed a significantly lower investment figure. Indonesia has stated it is prepared to allow Apple to sell its latest products in the country if the world's second-largest company by market capitalization makes a substantial investment.

“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,” Febri Hendri Antoni Arif, the ministry’s spokesperson, said in Jakarta on Wednesday.

Despite its absence from the local smartphone market, Apple’s popularity remains strong. Industry Minister Agus Gumiwang Kartasasmita revealed that Apple’s 2023 sales in Indonesia exceeded Rp 30 trillion. However, its continued inability to meet TKDN requirements gives Samsung an edge to dominate the top-tier smartphone market.

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