‘Too much bureaucracy’: Indonesia’s potential Apple iPhone 16 ban stirs debate among local netizens
Apple had previously secured the required certification, allowing its products to be sold in Indonesia but the certificate has since expired, said Indonesia’s Industry Minister, adding that the company also fell short of its investment commitment.
· CNA · JoinJAKARTA: The newly launched iPhone 16 from tech giant Apple could be banned from the Indonesian market, sparking debate among the country’s netizens.
On Tuesday (Oct 8), Industry Minister Agus Gumiwang Kartasasmita confirmed that sales of the phone will not be allowed in the country until the company fulfils its investment commitments and renews its local content requirements certification or TKDN.
“Apple’s iPhone 16 cannot be sold yet in Indonesia as the extension of the TKDN certification is still pending, awaiting further investment realisation from Apple,” Mr Agus said to local media during an event held at Kempinski Hotel Grand Ballroom in Jakarta on Oct 8.
He added that Apple had previously secured the TKDN certification, thus allowing its products to be sold in Indonesia. However, the certificate has since expired and must be renewed, according to the Jakarta Globe
The 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 per cent.
Mr Agus added that the company has also fallen short of its investment commitments to the country.
“Apple’s investment realisation has only reached 1.48 trillion rupiah (US$94.53 million), falling short of its total commitment of 1.71 trillion rupiah,” Mr Agus said, as quoted by local media Tempo.
The news has drawn mixed reactions from local netizens. While some support the decision, citing the importance of meeting local requirements, others criticise it.
“There’s too much bureaucracy to follow, Apple will not lose out if it does not invest in Indonesia. Better to invest in other countries with minimal corruption,” said X user @7dosabesarr on Oct 10.
“Cheaper to buy overseas anyways,” another X user @pak_anggoro said on Oct 9.
“Profit for Apple Singapore”, said X user @kerberooz on Oct 10.
According to Bloomberg Technoz, Apple stores in neighbouring countries such as Malaysia and Singapore have frequently been the preferred destinations for Indonesian Apple fans looking to quickly purchase devices.
Calculations by Bloomberg Technoz also indicated that with tax and International Mobile Equipment Identity (IMEI) registration fees, the total cost of bringing home the cheapest iPhone 16 from Singapore to Indonesia can reach up to 18 million rupiah.
The cheapest iPhone 16 is priced at about S$1,299 (US$994), in Singapore, according to Apple. Buyers from Indonesia will have to pay an additional US$155 in fees to import the iPhone into their country.
There are also local netizens who support the regulations currently keeping Apple outside the Indonesian market.
“Apple has to follow Indonesian laws to continue selling its products here, if it does not want to, it has to be blocked,” said YouTube user @anasanarsas797 in a comment to a video on the possible ban uploaded by CNBC Indonesia on Oct 8.
Another YouTube user, @ahmadzacky9724, commented: “Laws need to be tightened so foreign products cannot enter Indonesia easily.”
If Apple fulfils its investment commitment, the government will allow the highly anticipated latest iPhone, which officially launched on Sep 20 along with other latest Apple products to enter its domestic market.
“This is all based on fairness for investors who have shown strong commitment to investing in Indonesia,” Mr Agus clarified.
Under the Ministry of Industry regulations outlining the conditions and procedures for calculating the local content value for electronic devices, Apple can meet the TKDN requirement through three schemes.
Firstly, the local manufacturing scheme, which means the products have to be produced within the country. Secondly, the local application scheme, which involves the development of applications domestically and thirdly, the innovation development scheme, which focuses on the creation of innovative products within the country.
Mr Agus highlighted that Apple has opted for the innovation development scheme to attain the required TKDN certification, according to the Jakarta Globe.
As part of its commitment to local innovation, Apple has already established three Apple academies in Tangerang, Sidoarjo and Batam.
During CEO Tim Cook’s visit to Indonesia in April this year, the company also announced plans to open a fourth Apple Academy in Bali.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app