The Indonesian government has taken firm steps by officially banning the sale of iPhone 16 in the domestic market.
The Ministry of Industry (Kemenperin) is known to be deactivating the International Mobile Equipment Identity (IMEI) serial number for iPhone 16 products that are proven to be traded domestically.
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The Minister of Trade (Mendag) Budi Santoso also stated that his party would take firm action against e-commerce that dared to sell the iPhone 16 on its platform.
So, why is Apple’s latest cellphone series, the iPhone 16m, banned from being distributed in Indonesia?
The main reason the iPhone 16 is banned in Indonesia is because the product does not meet the Domestic Component Level (TKDN) requirements set by the government.
According to the regulation, a product must have at least 40 percent of its components manufactured domestically to obtain a sales permit.
Without a TKDN certificate, as in the case of the iPhone 16, the sale of the product is illegal in Indonesia.
Not fulfilling investment commitments
In addition to the TKDN certificate, the ban on selling the iPhone 16 is also related to investment commitments that have not been implemented by Apple.
Previously, Apple promised to invest IDR 1.71 trillion in Indonesia. However, to date, Apple has only realized an investment of IDR 1.48 trillion.
This has caused disappointment among government officials who had hoped that large companies like Apple would fulfill this commitment in order to be able to operate legally in the Indonesian market.
In response to the ban on selling the iPhone 16, Apple stated their commitment to investing more in Indonesia.
Apple reportedly proposed an investment of IDR 157 billion to produce more products in Indonesia. This step was taken so that the ban on selling the latest iPhone products in Indonesia could be lifted.
Will build a factory in Bandung
In addition to increasing investment, Apple is also reportedly planning to build a factory in Bandung, West Java, in collaboration with local suppliers.
The facility is planned to be used to produce accessories and components for Apple devices. In addition to meeting TKDN requirements, this effort is also expected to increase Apple’s presence in Indonesia.
Apple has submitted its proposal to the Ministry of Industry. Currently, the Ministry is still considering the proposal.
In an effort to meet TKDN requirements, Apple is also exploring various investment possibilities in the innovation sector, including education and training through the Apple Developer Academy program in Indonesia.