Apple iPhone 16 Denied Entry to Indonesia: Company Fails to Meet Market Commitments

Indonesia is denying the all new Apple iPhone 16 from the local market, sparking massive debate among the country's netizens.

Industry Minister Agus Gumiwang Kartasasmita confirmed that Indonesia will be halting the sales of all iPhones until the Apple fulfils its investment commitments and renews its TKDN.

Apple has previously secured the TKDN certification, but Apple failed to renew it since it expired. TKDN refers to the quality of domestic components in a good or service. To obtain the certification, Apple products must meet the Domestic Component Level value requirement of at least 40%.

Apparently, Apple has also failed to keep to its investment commitments to the country. Apple's investment realisation has only reached 1.48 trillion rupiah, falling slightly short of its total commitment of 1.71 trillion rupiah.

Mixed reactions from netizens

This news has drawn mixed reactions from netizens, with some citing the importance of meeting local requirements, while others criticized the unnecessary amount of red tapes in local regulations.

One netizen criticized the red tapes that existed in the country, saying

"There's too much bureaucracy to follow, Apple will not lose out if it does not invest in Indonesia"

Another netizen pointed out how much easier it would be to buy their apple products from overseas. According to Bloomberg Technoz, locals have often chosen Apple stores in neighbouring countries such as Malaysia and Singapore to get their apple products. Hence, this regulation would have little impact on them.

Conversely, there are also local netizens who support the regulation to keep Apple out of the local market. One netizen pointed out the importance of keeping to the local rules, saying,

"Apple has to follow Indonesian laws to continue selling its products here. If it does not want to, it has to be blocked."

If Apple managed to fulfill its promises, it would be able to sell its all the new iPhone 16 along with all its other latest Apple products.

In the name of fairness

Mr Agus stresses that this insistence is to ensure the fairness for investors who have shown strong commitment to investing in Indonesia.

According to the Ministry of Industry's regulations on calculating local content value for electronic devices, Apple can fulfill the TKDN requirement through three approaches. The first is the local manufacturing scheme, where products must be produced domestically. The second option is the local application scheme, which focuses on developing applications within the country. The third is the innovation development scheme, emphasizing the creation of innovative products locally.

Apple currently belongs to the third category.