The iPhone 16 remains unavailable in Indonesia as negotiations between Apple and the government reach a standstill. The Indonesian government has raised the stakes, insisting Apple establish local production facilities as a prerequisite for market entry.
Minister of Industry Agus Gumiwang Kartasasmita underscored that Apple has yet to make a definitive commitment to invest in Indonesia. “Apple hasn’t provided a commitment, so the government cannot issue a distribution permit. We are working with Minister Rosan to ensure Apple invests here, specifically in production facilities or factories,” Agus stated during the CNBC Indonesia Awards 2024 at The Westin Ballroom, Jakarta, on Wednesday (December 11, 2024).
The government is adamant about ensuring Apple complies with Indonesia’s Domestic Content Level (TKDN) requirement, which mandates that at least 40% of components in products sold locally must be sourced domestically. The iPhone 16 has yet to meet this threshold, delaying its approval for sale.
Minister of Investment and Downstreaming Rosan Roeslani has been engaged in intensive discussions with Apple over this regulation. Coordination between the Ministries of Investment and Industry aims to smooth the path for Apple’s compliance, bolstered by plans for a $1 billion investment from one of Apple’s key vendors.
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“This investment is already planned, valued at $1 billion,” Rosan explained. He also highlighted that Apple’s supply chain includes 320 vendors, some of which could be integrated into Indonesia’s ecosystem.
According to Rosan, the initial phase of Apple’s investment might come as early as next year, accelerating the original timeline of 2026. “The Ministry of Industry hopes construction will start in 2025, with investment materializing by 2026. We are pushing to expedite this, so we aim for realization by 2025,” Rosan elaborated.
Beyond the broader economic benefits, this investment would clear the way for the iPhone 16 to enter the Indonesian market. Rosan emphasized, “Apple is eager for this investment to move forward so that the iPhone 16 can be sold here. It’s just a matter of fine-tuning the details.”
The situation highlights a balancing act between ensuring regulatory compliance and fostering economic investment. For now, Indonesian consumers eager for Apple’s latest product will have to wait as negotiations continue.
