Indonesia won’t lift iPhone 16 ban unless Apple starts manufacturing iPhone components locally

If you thought that the new year would bring an end to the ongoing iPhone 16 ban in Indonesia, think again. Reuters is now reporting that Indonesia wants Apple to set up a manufacturing hub for iPhone components in the country in order to lift its ban.

Indonesia’s Industry Minister, Agus Gumiwang Kartasasmita, has reportedly held several meetings with Apple executives in the last few days, with the two sides agreeing on a manufacturing facility for Apple AirTag trackers, which will be set up on Batam Island. Apple previously committed to a $1 billion investment in the country, but that’s still not enough for Indonesian authorities to clear the iPhone 16 ban.

There is no basis for the ministry to issue a local content certification as a way for Apple to have the permission to sell iPhone 16 because (the facility) has no direct relations, he said, adding the ministry would only count phone components.

The root of the iPhone 16 ban goes back to a specific Indonesian law that requires foreign companies to provide 40% local content to operate locally as part of the Domestic Component Level (TKDN) certification. Companies can fulfill those requirements by either manufacturing products locally, developing software locally or setting up R&D centers.

As it stands, Apple will have to continue its negotiations with the Indonesian government as we await the next step in this ongoing saga.

Source

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