Apple iPhone 16: Indonesia has banned the sale of Apple’s latest iPhone due to the company not fulfilling its investment obligations in the country. Industry Minister Agus Gumiwang Kartasasmita said last week that the American multinational company has not yet met its investment commitments in Indonesia and needs to update its domestic license.
Agus stated to reporters in Jakarta on October 8, “Apple’s iPhone 16 cannot yet be sold in Indonesia because the extension of TKDN certification is still pending, awaiting further investment from Apple.” He added that Apple has only invested 1.48 trillion rupiah (USD 95 million) in Indonesia, which is less than its total commitment of 1.71 trillion rupiah.
The ministry’s spokesperson, Febri Hendri Antoni Arif, informed local news outlets that the California-based tech giant has not yet fulfilled its promise of investment through its four research and development facilities in Indonesia. Apple’s new phone, along with other products, was officially launched on September 20, but these new products are not available in Indonesia.
Indonesia is pressuring Apple to increase its local content by partnering with domestic firms. During a visit to Jakarta in April, CEO Tim Cook said that after meeting President Joko Widodo, the company would consider establishing a manufacturing unit in Indonesia. Cook stated, “We discussed the president’s desire to promote manufacturing in the country, and this is something we will consider.”
Currently, Apple has no manufacturing unit in Indonesia, but since 2018, it has been setting up research and development facilities, also known as developer academies, at a total cost of 1.6 trillion rupiah. To sell its new phone in Indonesia, Apple must meet the 40% TKDN (local content) value requirement.
Indonesia has become an attractive target market for technological investment. Following Cook’s visit, Microsoft CEO Satya Nadella announced an investment of USD 1.7 billion to enhance cloud and AI infrastructure in the country.
While most of Apple’s assembly still occurs in China, the company has been looking to diversify its supply chain due to growing trade tensions between Washington and Beijing. So far, Vietnam and India have emerged as major beneficiaries, but Indonesia hopes Apple will move forward with establishing a manufacturing unit there.
