Apple Cannot Sell iPhone 16 in Indonesia As Investment Targets Missed by $15M

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Indonesia has halted the sale of Apple’s latest iPhone 16 series due to the company’s failure to meet local content regulations and investment commitments. The decision, announced by Minister of Industry Agus Gumiwang Kartasasmita on October 8, 2024, originates from Apple’s incomplete investment obligations and an expired domestic component level (TKDN) certification.

According to Minister Kartasasmita, Apple has invested 1.48 trillion rupiah ($95 million) in Indonesia, falling short of its total commitment of 1.71 trillion rupiah ($109.6 million).

The tech giant has yet to fulfill its promise to establish four research and development facilities in the country, as stated by ministry spokesman Febri Hendri Antoni Arif.

The TKDN certification, which requires at least 40% local content in goods and services, is a key factor in the sales block. Apple’s previous certification has expired, and the company must renew it to resume iPhone 16 sales in Indonesia.

To regain approval for selling the iPhone 16 in Indonesia, Apple needs to:

  1. Complete its investment commitments
  2. Renew its TKDN certification
  3. Make additional investments in the country

Apple has previously chosen to comply with TKDN standards through an innovation development scheme, which includes the creation of Apple Academies in Indonesia. Currently, there are three such academies, with plans for a fourth in Bali.

The sales block affects Indonesian consumers eagerly awaiting the new device, which was officially launched on September 20, 2024, alongside other Apple products.

Until the issues are resolved, local Apple enthusiasts will not be able to purchase the iPhone 16 series in Indonesia.

More here.

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