Government to Block Sales of iPhone 16 and Google Pixel on E-Commerce Platforms

Antara
November 5, 2024 | 7:25 pm
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The Apple iPhone 16 is displayed at the Apple Fifth Avenue store on Sept. 20, 2024, in New York. (AP Photo/Pamela Smith, File)
The Apple iPhone 16 is displayed at the Apple Fifth Avenue store on Sept. 20, 2024, in New York. (AP Photo/Pamela Smith, File)

Jakarta. Trade Minister Budi Santoso announced that Indonesia is prepared to take action against e-commerce platforms selling the iPhone 16 and Google Pixel, as neither smartphone has received government approval for domestic sale.

"E-commerce platforms are regularly evaluated. If any are found selling the iPhone 16 or Google Pixel, we will take appropriate action," Budi said during a press briefing in Tangerang, Banten, on Tuesday.

The Trade Ministry has prohibited online platforms from listing the iPhone 16 and Google Pixel due to non-compliance with Indonesia's Domestic Content Level (TKDN) requirements. The Industry Ministry has announced plans to block the International Mobile Equipment Identity (IMEI) for iPhone 16 sold in the country, similar to the measures already in place for the Google Pixel, rendering these devices unusable in Indonesia.

Currently, the iPhone 16, which was launched in September, remains unavailable in Indonesia due to its failure to meet the TKDN threshold of 35-40 percent, a regulation designed to promote local manufacturing. A search on major Indonesian e-commerce platforms confirmed the device's absence.

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Despite the ban, the Industry Ministry reported that around 9,000 iPhone 16 units have entered the country through individual travelers from August to October 2024, with appropriate taxes paid. So far this year, 22,000 Google Pixel units have also entered Indonesia legally through personal imports or overseas shipments. However, these devices are strictly for personal use and may not be resold domestically.

Following up on the restrictions, Budi mentioned that his ministry will deploy teams to monitor compliance on e-commerce sites if necessary.

Additionally, the Industry Ministry disclosed that Apple sent a letter to Minister Agus Gumiwang Kartasasmita, requesting a meeting to discuss the TKDN certification issue. Agus confirmed that Apple’s certification had expired, and its renewal hinges on Apple's plans for further investment in Indonesia.

Google has also been encouraged to apply for TKDN certification if it intends to sell its Pixel devices officially in the Indonesian market. Options include investing in innovation, setting up local manufacturing, or partnering on application development.

Reports from Bloomberg indicate that Apple has proposed an investment of nearly $10 million (Rp 157 billion) in Indonesia to produce accessories and components at a facility in Bandung, West Java. The factory, operated in partnership with local suppliers, would bolster Apple’s compliance with TKDN regulations.

Chair of the National Economic Council Luhut Binsar Pandjaitan commented on the restrictions, highlighting Indonesia’s openness to job creation. “We’re open to any opportunity, especially if it means production within the country. It aligns with our goal to create jobs,” he said at the Presidential Palace in Jakarta on Tuesday, adding that the government aims to promote both high-tech and labor-intensive industries.

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