The ongoing saga between Indonesia and Apple continues as the Southeast Asian nation insists that the tech giant must establish local component manufacturing before it can sell the iPhone 16 within its borders.
Recent meetings between Indonesia's Industry Minister, Agus Gumiwang Kartasasmita, and Apple executives have yielded an agreement to set up a manufacturing facility for Apple AirTag trackers on Batam Island. However, this initiative is not sufficient to meet the government's stringent regulations.
There is no basis for the ministry to issue a local content certification allowing Apple to sell the iPhone 16 because the AirTag facility has no direct relevance to phone components, Kartasasmita stated. The ministry's focus will remain solely on mobile device components.
The crux of the sales ban lies in Indonesian law, which mandates that foreign companies incorporate a minimum of 40% local content as part of the Domestic Component Level (TKDN) certification. Companies can meet these requirements by establishing local manufacturing, developing software in the country, or creating research and development centers.
As negotiations between Apple and the Indonesian government proceed, the tech world keenly awaits the next development in this pivotal junction that could affect Apple's operations in the region.
