The ongoing iPhone 16 ban in Indonesia shows no signs of being lifted anytime soon, as the government continues to press Apple to establish local manufacturing operations. Despite recent discussions and commitments, Apple’s efforts have not yet met the country’s stringent requirements.
Local manufacturing is a key condition
Indonesia’s iPhone 16 ban stems from the Domestic Component Level (TKDN) certification, which mandates foreign companies to ensure 40% local content in their operations. This requirement can be fulfilled by manufacturing products locally, developing software in the country, or establishing research and development centers.
While Apple has taken steps to comply, including committing to a $1 billion investment, this has not been enough to satisfy Indonesian authorities. The government is very clear about its position. Apple must set up a manufacturing hub for iPhone components in Indonesia. The company must do this before it will consider lifting the ban.
Agreement on AirTag production
In recent negotiations, Indonesia’s Industry Minister, Agus Gumiwang Kartasasmita, held meetings with Apple executives. The two parties reached an agreement to establish a facility for manufacturing Apple’s AirTag trackers on Batam Island. However, while this move aligns with the government’s push for local manufacturing, it is not sufficient to address the broader issue of iPhone production.
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.
Why TKDN law matters
The TKDN law in Indonesia works to grow local output, add jobs, and aid the home economy. It asks foreign firms to play a role in local output. This rule has been tough for many global brands, and it hits Apple hard due to its wide use of plants outside the nation.
To end the ban on the iPhone 16, Apple must grow its local work or find new deals with the state. The plan to build AirTag tools on Batam is a good start, but it may not be enough to meet the 40% home need for iPhones.
As talks go on, it is not clear what will come next for the iPhone 16 in Indonesia. Apple’s picks will be key to lifting the ban and keeping its spot in the market. For now, fans in the land must wait as this clash plays out.
