Tag #Local Component Rule

What are the immediate consequences of Indonesia rejecting Apple's investment proposal for the iPhone 16?

Indonesia rejected Apple's \$1 billion proposal to build an AirTag production facility, deeming it insufficient to meet local component requirements for iPhone 16 sales. This decision stems from Indonesia's Domestic Component Level (TKDN) regulation, mandating 40% of smartphone parts be domestically produced. The rejection highlights a clash between Indonesia's economic goals and Apple's investment strategy.