Indonesia has issued local content certificates for 20 Apple products, including the iPhone 16, an industry ministry spokesperson tells Reuters. However, the tech giant still needs permits from other ministries before it can sell the smartphones.
On February 25, it was reported that Apple and the Indonesian government have reached a deal to left the iPhone 16 ban in Indonesia. Apple will apparently fork out in excess of US$1 billion to make this happen.
On October 8, 2024, it was reported that Indonesia was blocking the sale of the iPhone 16 line-up because Apple hadn’t compiled with local content regulations aimed at boosting the domestic industry. The tech giant had yet to fulfill its investment commitments in Indonesia and must renew its domestic component level (TKDN) license, Minister of Industry Agus Gumiwang Kartasasmita said at the time.
“Apple’s iPhone 16 cannot be sold in Indonesia yet because the extension of the TKDN certification is still pending, awaiting further investment realization from Apple,” Agus said. The iPhone maker has only invested 1.48 trillion rupiah (about US$95 million) in Indonesia, he said, “falling short of its total commitment” of 1.71 trillion rupiah.”
Apple offered US$1 billion and a promise to build an AirTag Batam in Indonesia. The Batam facility is expected to initially employ 1,000 workers and will eventually account for 20% of global AirTag production.
Bloomberg reported that on top of the $1 billion investment, Apple will commit to training locals in research and development on the company’s products so they can then develop similar software and design their own goods.
So what’s the hold-up in allowing iPhone 16 sales in Indonesia? The company now needs permits from the communications and digital ministry and the trade ministry to be able to sell its products in the country, Febri tells Reuters.
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