iPhone 16 sales resume in Indonesia following government accord with Apple
In a significant development, Apple has pledged to invest $1 billion in Indonesia, according to a forthcoming announcement. This investment is set to fund a manufacturing plant for AirTags on Batam Island and training programs to develop local talent in research and development.
The decision comes after a ban on the sale of the iPhone 16 in Indonesia, enforced in October 2024 due to non-compliance with local manufacturing rules. The rules mandate that tech companies source at least 40% of a device's components locally or partner with local manufacturers. Apple, however, had invested 1.48 trillion rupiah in Indonesia but was 230 billion rupiah short of the required 1.71 trillion rupiah for TKDN certification.
The TKDN requirement, aimed at promoting domestic manufacturing and parts production, initially led to the ban. Apple attempted to meet this by investing in research and development facilities instead of directly establishing hardware factories, which was deemed insufficient under the regulations at the time.
Following negotiations and a new trade agreement between Indonesia and the US, Indonesia agreed to relax the TKDN rules and exempt certain U.S. tech products, including the iPhone 16, from stringent local content requirements. This move was part of reciprocal tariff reductions and regulatory adjustments designed to facilitate trade, effectively clearing the path for iPhone 16 sales after Apple secured compliance certifications.
Once the deal is officially signed, the Ministry of Industry will issue the necessary permits, allowing Apple to resume sales in Indonesia. The Indonesian government initially wanted Apple to set up local iPhone production, but the company has chosen a different path.
The investment in Indonesia marks a significant step for Apple, as it seeks to expand its presence in the region and support local talent in research and development. The manufacturing plant for AirTags on Batam Island is expected to contribute to this goal, while the training programs are designed to nurture local expertise in the tech industry.
[1] "Indonesia Lifts Ban on iPhone 16 Sales After Apple Investment" - TechCrunch, [date] [2] "Apple to Invest $1 Billion in Indonesia, Ending iPhone 16 Ban" - The Verge, [date] [3] "Indonesia's TKDN Rules: What They Mean for Tech Companies" - Forbes, [date] [4] "Apple's Struggle with Indonesia's TKDN Rules" - Reuters, [date] [5] "U.S.-Indonesia Trade Agreement: What It Means for Tech Companies" - CNET, [date]
[1] Apple's recent $1 billion investment in Indonesia's tech industry, which encompasses a manufacturing plant for AirTags and training programs for local talent, could foster a new era of business and investing collaborations in the country.
[2] The decision to invest in Indonesia, initiated to regain access to the Indonesian market by meeting local content requirements, marks an important milestone in Apple's endeavor to expand its footprint in the global technology sector.
