Exports Of IPhones From India Increased By IDR 94.5 Trillion In The First Six Months Of 2024, While The IPhone 16 Failed To Enter Indonesia

The iPhone 16 is still hampered by official entry in Indonesia (photo: x @NoContextHumans)

JAKARTA The number of iPhones produced in India has increased by a third in the last six months until the end of September 2024, in line with Apple's efforts to expand its operations in the country. This move is part of Apple's strategy to reduce dependence on one country, although China continues to encourage Apple to continue investing in its factories there.

In addition to expanding production in Vietnam, India has become the main beneficiary of Apple's decision, with India claiming that Apple is the fastest growing company in the country in 50 years.

According to Bloomberg, sources in India reported that the export value of iPhones from India reached nearly $6 billion in the six-month period to September 2024. Foxconn, one of Apple's main suppliers, accounted for about half of the total figures, while the rest were produced by Pegatron and Tata Group.

Tata Group became India's first iPhone assembler after buying a factory from Wistron in 2023, and recorded an export value of around $1.7 billion over the past six months. These figures are based on the estimated "factory gate value", without including other costs such as taxes or shipments that are usually added to retail prices.

Based on the factory's opening value alone, it is estimated that India will exceed the total export of 10 billion US dollars (Rp157 trillion) recorded in the fiscal year 2024. In addition, an Indian trade minister in January 2023 stated that Apple plans to produce a quarter of its total global iPhone in India in the future.

IPhone 16 Not Entering Indonesia

While iPhone production and exports continue to grow rapidly in India, Indonesia is facing challenges in entering the iPhone 16 into the domestic market. The main reason for the failure of the iPhone 16 to enter Indonesia is that the requirements for the Domestic Component Level (TKDN) set by the Indonesian government have not been met.

The TKDN policy requires that electronic products sold in Indonesia must have a certain percentage of local components.

Apple is reportedly still looking for a solution so that the iPhone 16 can meet the provisions of TKDN. In Indonesia, TKDN currently requires 4G and 5G products to meet a local content level of at least 35%. Although Apple has made several efforts to meet these provisions by working with local production partners, challenges remain, especially in the aspects of local production and certain components that are still imported.

This situation is a major concern for Apple, which wants to maintain the availability of products in the Southeast Asian market, including Indonesia. Until the TKDN rules are met, consumers in Indonesia may wait longer to get the iPhone 16 through official channels.