Key Details of the Ban
Minister Kartasasmita stated, “If there is an iPhone 16 that can operate in Indonesia, that means that I can say, the device is illegal. Do report it to us.” This stern warning highlights that no International Mobile Equipment Identity (IMEI) certification has been issued for the iPhone 16, rendering it unauthorized for use in the country. The iPhone 16 was launched globally on September 20, but it remains unavailable to Indonesian consumers alongside other new Apple products, including the iPhone 16 Pro lineup and Apple Watch Series 10.
Reason Behind the Ban
The root cause of this ban lies in Apple’s unfulfilled investment commitments in Indonesia. The tech giant had pledged to invest 1.71 trillion rupiah (approximately $115 million) in the country but has only completed an investment of 1.48 trillion rupiah (around $95 million). This leaves a shortfall of 230 billion rupiah (about $14.75 million) that Apple has yet to fulfill.
Minister Kartasasmita clarified the situation further, stating, “We, the Ministry of Industry, are yet to be able to issue permits for the iPhone 16 because there are still commitments that Apple must realize.” Earlier this month, he had indicated that the iPhone 16 could not be sold in Indonesia until the extension of the TKDN (Domestic Component Level) certification was finalized, pending Apple’s further investment.
Understanding TKDN Certification
The TKDN certification is critical for any technology company wishing to sell products in Indonesia. It requires companies to meet a minimum local content value of 40%. This regulation is part of Indonesia’s broader efforts to promote local manufacturing and encourage foreign companies to establish production facilities within the country. The certification process is intrinsically linked to Apple’s promise to develop research and development facilities, specifically the Apple Academies, in Indonesia.
Apple’s Previous Engagements in Indonesia
This announcement comes despite a recent visit by Apple CEO Tim Cook to Jakarta in April, where he discussed potential manufacturing plans with Indonesian President Joko Widodo. During this meeting, Cook indicated that Apple was open to considering the establishment of manufacturing facilities in the country. However, the lack of action on these commitments seems to have led to the current predicament.
The Way Forward
The spokesperson for Indonesia’s Industry Ministry, Febri Hendri Antoni Arif, confirmed that the TKDN certification application for the iPhone 16 is currently under review. However, the approval remains contingent on Apple fulfilling its investment commitments. Until these obligations are met, consumers in Indonesia will have to wait for the iPhone 16 and its related products to become available.
This situation reflects the ongoing tensions between global tech companies and local regulations in emerging markets, as countries like Indonesia seek to leverage foreign investment to bolster their own technological capabilities. As the landscape continues to evolve, it remains to be seen how Apple will respond to these challenges and whether they can meet the requirements set forth by the Indonesian government.
