Indonesia’s Ongoing iPhone 16 Ban: Apple Must Establish Local Manufacturing
The arrival of the new year hasn’t signaled an end to the iPhone 16 prohibition in Indonesia. Recent reports from Reuters indicate that Indonesian authorities are demanding Apple to establish a manufacturing base for iPhone components within the nation as a condition for lifting the ban.
Negotiations Between Apple and Indonesian Officials
Agus Gumiwang Kartasasmita, Indonesia’s Minister of Industry, has been actively engaging with Apple executives over recent days. During these discussions, both parties have reached an agreement on establishing a manufacturing facility dedicated to producing Apple AirTag trackers on Batam Island. Despite Apple’s commitment of $1 billion towards investment in Vietnam, this is still insufficient for Indonesian officials who seek stricter compliance before allowing sales of the highly anticipated iPhone 16.
No Local Content Certification Without Manufacturing
The minister clarified that without setting up a facility dedicated directly to phone component production, there is no justification for granting local content certification necessary for Apple’s permission to market the iPhone 16. The focus will solely be on mobile device components.
Understanding Indonesia’s Regulatory Landscape
The impetus behind this ongoing ban lies within specific regulations mandating that foreign enterprises must integrate at least 40% local content into their operations as part of securing Domestic Component Level (TKDN) certification. Compliance can be achieved through various means including local manufacturing of products, software development conducted domestically, or establishing research and development centers in the country.
A Future Full of Negotiations
With negotiations continuing between Apple and the Indonesian government, it remains uncertain what steps will unfold next in this complex scenario surrounding one of technology’s most sought-after devices.
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