Indonesian users are unable to purchase the iPhone 16 because the country requires Apple to increase its investment to qualify.
As of October 12, the iPhone 16 has not appeared on the website of the TKDN (Domestic Component Level) certification of Indonesia’s Ministry of Industry, meaning the product has not been cleared for sale in this market. TKDN is a requirement regarding the localization ratio in Indonesia, where products sold must have a certain percentage of domestic components. For electronic products like smartphones, this rate is at least 35%.
‘iPhone 16 is still not able to enter the Indonesian market because Apple is in the process of obtaining the TKDN certification, which is one of the conditions for importing phones,’ said Indonesian Minister of Industry Agus Gumiwang Kartasasmita on October 8. He noted that the American company had a permit, but it expired, and Indonesia is requiring them to renew it by increasing their investment.
Indonesia bans Apple from selling iPhone 16 due to licensing and investment issues. Photo: indonesiasentinel
According to local media, Apple committed to investing 1.71 trillion IDR (110 million USD) but has only fulfilled 1.48 trillion IDR, meaning they still owe 240 billion IDR (15.4 million USD).
‘Once they comply, we will issue a permit for selling the iPhone 16. Everything is based on fairness for investors with strong commitments to Indonesia,’ Agus told CNBC Indonesia, considering this sum ‘relatively small’ compared to what Apple could gain from a market of nearly 300 million people.
According to Channel News Asia, Indonesia’s requirement has sparked mixed opinions from local users. Many believe that Apple and other companies must comply with regulations when operating in the country. Meanwhile, others argue that the complex regulations hinder users’ access to technology, forcing them to buy iPhone 16s from markets in Singapore, Malaysia, and thus benefiting those countries.
This site cites that the iPhone 16 in Singapore costs an average of 1,000 USD, but Indonesians have to pay an additional 155 USD to acquire it as a ‘grey market’ product.
‘Apple wants incentives like in Vietnam’
There are three ways for a company to meet TKDN requirements in Indonesia: by having a plan to manufacture devices, create apps, or develop innovation locally. Apple chose the third option by building developer academies.
According to Agus, Apple ‘shouldn’t just establish academies,’ but also needs to open a factory or research and development center. This would allow them to meet a 40% TKDN ratio, making it easier for products to enter the market. Apple is the only major phone manufacturer without a factory in Indonesia, while Samsung and Chinese companies like Xiaomi, Oppo, and Vivo have already started producing phones there.
However, in an explanation on CNBC Indonesia, Budi Arie Setiadi, Indonesia’s Minister of Communication and Information, said Apple has requested incentives ‘similar to those they received in Vietnam,’ including tax breaks if they ensure the creation of hundreds of thousands of jobs.
According to Budi, this demand is ‘too large’ and could lead other companies to make similar requests. ‘That cannot happen,’ Budi said.
In a response to this news outlet on October 11, Apple confirmed that they have ‘invested significantly and continue to expand’ in Indonesia. ‘We have a strong commitment to Indonesia and are eager to bring our latest products, including the iPhone 16, to customers,’ the company said.
During CEO Tim Cook’s visit to Indonesia in April, the Apple CEO opened the fourth developer academy in the country in Bali, while also ‘considering setting up manufacturing.’
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