Indonesia’s recent ban on Apple’s iPhone 16 reflects a significant tension between regulatory enforcement and corporate strategy . This situation highlights the delicate balance governments must maintain between fostering foreign investment and ensuring compliance with local content policies . It also sheds light on the risks companies face when they underdeliver on their commitments in fast-growing markets. Regulatory Challenges and Investment Shortfall The ban, announced by Indonesia’s Ministry of Industry , was triggered by Apple’s failure to meet its full investment commitment of $109 million USD (1.71 trillion rupiah) —falling short by $14 million USD . Additionally, Apple’s Domestic Component Level (TKDN) certification, which ensures that at least 40% of product inputs are locally sourced, has expired. Without TKDN compliance, the Ministry of Industry cannot issue the required International Mobile Equipment Identity (IMEI) registrations, making it illegal to sell or operate ...
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