The Indonesian government recently announced an order against Apple, banning the sale and use of the iPhone 16 and other Apple products released this autumn, including the Apple Watch Series 10, in the country.
Why the ban on the iPhone 16?
According to a statement released by Indonesia’s Ministry of Industry, PT Apple Indonesia, a local subsidiary of Apple, failed to meet Indonesia’s requirement for a 40 per cent localisation rate of components in smartphones and tablets, known as the Certification of Product Origin (TKDN, Tingkat Kemasukan Domestik Nasional) certification, which is designed to encourage companies to manufacture and source locally in Indonesia in order to promote the domestic industry.
In addition, Indonesia has not yet been able to issue the necessary International Mobile Equipment Identity (IMEI) certification for the iPhone 16, which is required to sell the handset in the country, as Apple still has a number of promises to fulfil. The Indonesian Ministry of Industry said that Apple had promised to invest Rp 1.7 trillion (about $109 million) in Indonesia’s infrastructure and local sourcing, but the actual amount invested was lower than the total amount promised, at just Rp 1.48 trillion (about $95 million).
In short, Apple failed to renew its certification in time and honour its investment commitment, and Indonesia adopted a ban on sales in order to ‘protect the local industry and market’.
According to the Jakarta Globe, Indonesia’s Minister of Industry Agus Gumiwang Kartasasmita said in a statement that ‘if any iPhone 16 is used in Indonesia, then I can directly say that this device is illegal, and if you find it, please report it to us.’ He added that ‘Indonesia has not yet issued IMEI code certification for this device.’
Indonesian industry sector spokesman Febri Hendri Antoni Arif confirmed in a statement that there is an application for TKDN certification for the iPhone 16 under review, but it still depends on Apple honouring its investment commitments. He added that the department would continue its efforts to control the import of mobile phone products in order to encourage investment and innovation in domestic electronics. The initiative aims to bring opportunities to the Indonesian market, whose number of active mobile phones in the country exceeds even the population (270 million people) at 354 million.
Now, the Indonesian government has asked Apple to renew its TKDN certification and invest further in Indonesia in a timely manner, otherwise the iPhone 16 will not be able to resume regular sales in the Indonesian market.
However, Apple’s older models are not affected by the ban. And travellers can also bring up to two iPhone 16s into the country, but only for personal use and not for sale in Indonesia.
The ban handed down by the Indonesian government has certainly posed a challenge to Apple’s strategy in the Southeast Asian market.
Apple has stated that they are deeply committed to the Indonesian market and look forward to bringing all their latest products, including the iPhone 16 series, to customers in Indonesia as soon as possible. Despite the ban, Apple seems to be optimistic about resolving the current issue and hopes to meet the Indonesian government’s requirements as soon as possible in order to resume sales in the country.
Google’s Pixel phones face the same fate in the Indonesian market
Indonesian Industry Ministry spokesman Febri Hendri Antoni Arief said it was illegal to trade Google Pixel phones in Indonesia, even though some 22,000 Google Pixel phones have entered the country this year through personal shipments or carry-on items.
According to Indonesia’s Ministry of Industry, Google phones must comply with the rule that 40 per cent of smartphones sold in Indonesia have local components in order to be traded there.
‘We introduced these rules in order to give fair treatment to all investors in Indonesia. Google’s products do not comply with the programme we have put in place, so they cannot be sold here.’ Febri said Google must obtain local content certification before sales can resume. It is reported that Google Pixel phones are not yet officially available in Indonesia.
The Indonesian government has mandated that smartphone and tablet manufacturers need to meet up to 40 per cent of local content rules (TKDN, Tingkat Kemasukan Domestik Nasional) as part of Indonesia’s wider industrial policy, which is designed to encourage companies to manufacture and source locally in Indonesia in order to boost the domestic industry. Companies can comply by manufacturing equipment, developing firmware or investing in innovation in Indonesia. Samsung and Xiaomi, for example, have already set up local manufacturing facilities, while Apple has chosen to open a developer academy.
Companies that fail to meet the requirements will face sales restrictions in Indonesia, including a ban on the shelves and trading of mobile phones in online shops or physical shops, and the deactivation of their IMEI identification numbers, making it impossible to register these devices with local telecoms operators. Mobile phones purchased from abroad can be used for personal use, provided the owner declares and pays the necessary taxes upon entry.
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