Indonesia Makes a Stiff Demand to Apple: Manufacture Locally to Lift iPhone 16 Ban

Indonesia’s iPhone 16 Ban Still in Effect: Apple Must Meet Local Manufacturing Requirements

If you thought the new year would bring an end to the ongoing iPhone 16 ban in Indonesia, think again. According to recent reports, Indonesia wants Apple to set up a manufacturing hub for iPhone components in the country to lift the ban. But, is this a realistic solution?

The Roadblock to iPhone 16 Sales: A Local Content Quandary

Indonesia’s Industry Minister, Agus Gumiwang Kartasasmita, has been in talks with Apple executives to resolve this impasse. While they’ve made progress on establishing a manufacturing facility for Apple AirTag trackers on Batam Island, more needs to be done to meet the country’s local content requirements.

The 40% Local Content Conundrum: A History of Conflict

You see, Indonesia has a strict Domestic Component Level (TKDN) certification, which requires foreign companies to provide 40% local content to operate locally. Companies can fulfill this requirement by manufacturing products locally, developing software locally, or setting up R&D centers. Apple’s current $1 billion investment in Indonesia is a step in the right direction, but even that’s not enough to satisfy the Indonesian authorities.

The Stalemate Continues: Apple’s Next Steps

As the stalemate continues, it’s clear that Apple will need to continue its negotiations with the Indonesian government. But what’s next? Can Apple find a way to meet the 40% local content requirement and get the iPhone 16 ban lifted?

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