Indonesia is set to increase requirements for local components in smartphones sold domestically, aiming to boost its domestic manufacturing sector. The move follows the country’s ban last month on Apple’s iPhone 16 due to its failure to meet a requirement of at least 40% locally-made parts.
The government had rejected Apple’s $100 million investment proposal to build an accessory and component plant, citing it didn’t meet fairness standards. Deputy Industry Minister Faisol Reza stated that the goal is to strengthen Indonesia’s domestic industry, without specifying when or by how much the local content ratio will increase.
The government is re-evaluating whether investments in research and development can be counted as a local component. Apple has no manufacturing facilities in Indonesia but set up application developer academies since 2018 to meet local content requirements for older iPhone models.
Minister Faisol said that representatives from Apple will soon meet with the government to discuss a solution. The move is part of Indonesia’s efforts to reduce its reliance on foreign tech companies and promote domestic manufacturing.
Source: https://finance.yahoo.com/news/indonesia-increase-local-content-requirement-045848528.html