Apple’s iPhone 16 series has been banned in Indonesia for about four months. This prohibition, which began in October 2024, was directly related to the lack of fulfilling the local production and investment conditions in the country. Apple had to carry out long and challenging negotiations in this process. Now, as of April 11, the iPhone 16 series will take its place on the shelves of Indonesia again.
The Indonesian market is not only a growing technology market for Apple, but also a strategic transition point. The population approaching 280 million attracts attention with its young and young audience open to digitalization. Apple’s re -entering this market is not only commercial; A directly linked issue with regulations. The necessity of domestic content stands as an inevitable threshold for companies like Apple.
The Indonesian government runs 40 %domestic content requirements for the sale of technology products in the country. This arrangement, called TKDN, covers many areas from hardware to software. Companies are expected to fulfill these requirements either by domestic production or by making software development and R & D investments in the country. Although Apple did not directly shift iPhone production to Indonesia, it has chosen to meet this requirement indirectly.
The company will not produce iPhone in Indonesia, but will establish an Airtag production facility. In addition, a separate factory for the production of accessories will be implemented. In addition, Apple promised to establish new R & D centers in the country and invest in technology academies for students. All these steps were taken in order to capture the ratio of TKDN in indirect ways.
According to Reuters, Apple’s investment commitment is at a total of $ 300 million. Previously, this figure could be up to $ 1 billion. However, it is not clear whether this investment is a temporary compromise or a final agreement. Nevertheless, this step was enough to remove the ban.
With the removal of the sales ban, iPhone 16, 16 Plus, 16 Pro, 16 Pro Max and iPhone 16e models will be available throughout the country. The fact that these models will be on the shelves at the same time shows that Apple wants to make a quick turn to the market. In spite of everything, the fact that it has been directed to R & D and educational investments instead of production makes Apple think that this process is trying to turn this process into a more permanent being, not only on sale but to a more permanent being. This approach is the answer to both the government’s demands and local users.
Indonesia is a country that has been determining its local content policy for years. Manufacturers such as Samsung, Oppo and Xiaomi adapted to these arrangements earlier and strengthened their place in the market. Apple’s adaptation to this frame, albeit delayed, has the potential to strengthen his hand in competition. However, the fact that iPhone prices continue to remain high compared to other brands in the country is an important difficulty for Apple.
The late output of the iPhone 16 series seems to have lost the market share in Apple Indonesia
Late return to the market may have brought some market share losses to Apple. In particular, Chinese manufacturers operating in the middle segment seem to have effectively benefited from this gap. But in the upper segment, the iPhone’s brand’s brand still has a serious impact. The success of this return in Indonesia will largely depend on the purchasing power of local users and Apple’s service infrastructure.
In addition to all these, Apple’s steps go beyond only a short -term crisis. The contributions to digital training programs in the country and the new R & D centers give clues to the company’s long-term asset plans. The acceptance of the indirect investment model in response to the direct production expectation of the government may be an example for other companies that may face similar problems. Thus, Apple adapted to local laws and maintained its global production structure.