Indonesia to raise local smartphone parts requirement

Indonesia is set to tighten local content requirements for smartphones produced and sold domestically. The move, aimed at bolstering its manufacturing sector, follows last month’s ban on Apple’s iPhone 16 after failing to meet the current 40% local component threshold.

Apple has proposed a $100 million investment in an accessory and component plant to address the issue, but the government rejected the plan, citing fairness concerns. Deputy Industry Minister Faisol Reza confirmed ongoing discussions to finalise details of the updated requirements, though no timeframe or specific targets have been announced.

The government is considering whether research and development investments might count towards fulfilling local content rules. Apple’s developer academies, launched in Indonesia since 2018, have been seen as part of its compliance strategy for older models, though no manufacturing facilities exist in the country.

Government officials will soon meet Apple representatives to explore potential solutions. Authorities emphasise that the primary goal is to strengthen Indonesia’s domestic industries and create a more equitable regulatory environment.