Indonesia Cracks Down on Pixel and iPhone Sales to Boost Local Production!
The Indonesian Government’s Block on iPhone 16 and Pixel Phones Sales
The Indonesian Government has made a bold move by blocking the sale of the iPhone 16 and Pixel phones within its borders. This decision is part of the country’s “National Component Level” or TKDN strategy, which measures the percentage of local inputs used in the production of goods and services. By implementing this policy, Indonesia aims to boost local investment and collaboration with national companies and suppliers, ultimately creating job opportunities and fostering a strong local industry.
The Significance of the TKDN Certificate
The TKDN certificate mandates a specific percentage of national components to be used in products sold within the country. For electronic devices like mobile phones, a 40% TKDN is required to obtain permission. This means that products must incorporate local components or establish a supply chain that includes Indonesian suppliers and workers. This regulation plays a crucial role in Indonesia’s economic strategy, as it seeks to enhance local manufacturing and encourage technology manufacturers to contribute to the country’s economic growth and job creation.
Challenges Faced by Apple and Google in Meeting TKDN Requirements
Both Apple and Google are encountering challenges in meeting the TKDN certificate requirements. Apple’s failure to fulfill investment promises in the country has led to issues, as the government expected the company to build an assembly plant that would boost job creation and strengthen local manufacturing. Google, on the other hand, faces hurdles with the sale of Pixel phones through third-party distributors, as the new ban prohibits such sales without the TKDN. Despite these challenges, the regulations do not prevent users from purchasing Pixels abroad and using them in Indonesia.
Promoting Local Production and Equity in the Industry
To comply with TKDN requirements, many foreign companies are collaborating with Indonesian suppliers and incorporating local inputs into their production chains. The Ministry of Industry aims to ensure fairness for all investors in Indonesia, whether local or foreign, through these rules. This strategy not only attracts investment but also fosters competitiveness and innovation within the country, ultimately creating a more balanced environment for the growth of the local industry alongside international players.
Overall, Indonesia views TKDN as an opportunity to promote more equitable economic development across various industries, not just technology. By pushing large technology companies to adapt their practices, the country hopes to create an environment where local industries can thrive alongside global giants.
