The issue of the iPhone 16 ban in Indonesia didn’t just appear overnight; there’s a series of prior events that have strained Apple’s relationship with the country. Last April, Apple CEO Tim Cook’s direct meeting with President Joko Widodo brought a wave of optimism, but also disappointment. Apple promised investments, luring with the prospect of significant contributions to Indonesia, but these have yet to materialize.
During the meeting with President Jokowi, Apple pledged an investment of IDR 1.7 trillion to meet the 40 percent Local Content Requirement (LCR) through an innovation and education development scheme via Apple Developer Academies in several regions. While seemingly significant, this contribution pales in comparison to Apple’s commitments in neighboring countries. In Vietnam, for instance, Apple’s investment reached approximately IDR 255 trillion, creating 200,000 jobs. Singapore also received IDR 4 trillion for Apple’s office expansion.
Beyond the smaller investment sum, Apple has also been reluctant to open an Apple Store in Indonesia. The presence of an official store is highly anticipated, primarily for after-sales service that would streamline warranty claims. With an Apple Store, Indonesian consumers could access the latest products more quickly, aligning with global launches. However, instead of investing in Indonesia, Apple chose to open its first Apple Store in Malaysia.
To make matters worse, out of the total IDR 1.7 trillion investment, Apple has only realized IDR 1.4 trillion. With this incomplete realization, Apple automatically failed to meet the 40 percent LCR. This has led to the iPhone 16 being banned from circulation in Indonesia. This strict regulation mandates that incoming devices contain a certain percentage of local components, but Apple opted for a different approach with its innovation-through-education scheme, which, it turns out, has not been fully implemented.
Apple’s perceived half-hearted move has significantly impacted Indonesian consumer perception. Indeed, in its latest quarterly financial performance report, CEO Tim Cook no longer mentioned Indonesia as a market setting sales records, despite the country being listed among high-contributing nations in the same period the previous year.
Following the iPhone 16 ban, Apple finally submitted a request for an audience with the Indonesian Ministry of Industry, though there’s no certainty regarding a concrete solution. The Indonesian government still demands that Apple fulfill the remaining promised investment to streamline the LCR certification process, allowing the iPhone 16 to officially enter the Indonesian market. However, this step might not necessarily erase doubts about Apple’s commitment.
If Apple continues to maintain the same pattern, this could just be another false hope. As before, many of Apple’s promises remain unfulfilled, from full investment to the opening of an Apple Store in Indonesia. The next steps will determine whether Apple’s relationship with Indonesia will improve or remain stagnant.
Repiw Editor’s Conclusion
Apple faces a clear choice: prove its commitment or continue to offer empty promises without realization. For Indonesian consumers, the iPhone 16 ban underscores that every foreign investment must have a tangible impact on national progress. Hopefully, Apple understands the importance of concrete contributions, not just pledges.
