Main Article Content
Abstract
This study analyzes Indonesia’s international trade policy through the implementation of the Domestic Component Level (Tingkat Komponen Dalam Negeri/TKDN) requirement in the import licensing of the iPhone 16. The TKDN policy represents a form of protectionism aimed at strengthening domestic industries, reducing dependence on imported products, and encouraging foreign investment to contribute to local value creation. However, the enforcement of this policy has generated significant challenges, particularly for multinational corporations such as Apple, as reflected in the delay of iPhone 16 distribution in Indonesia in October 2024 due to non-compliance with TKDN standards. This research employs a qualitative descriptive approach using secondary data, including government regulations, policy documents, official reports, and relevant literature, supported by institutional perspectives from the Ministry of Industry and regional trade authorities. The analysis focuses on regulatory frameworks, implementation mechanisms, and the economic implications of TKDN enforcement in the smartphone sector. The findings indicate that while the TKDN policy has contributed to promoting local production, technology transfer, and workforce involvement, it also poses administrative, regulatory, and market challenges that may affect investment attractiveness and supply chain efficiency. The study highlights the need for regulatory refinement, improved certification processes, and enhanced policy coordination to ensure that TKDN effectively balances domestic industrial protection with openness to international trade and innovation.
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References
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References
Afiffah Rahmah Nurdifa. (2025). Indonesia blocks iPhone 16 sales due to failure to meet local content requirements. National Industry Policy Review, 5(1), 22–30.
Ahsen Demir, A., & Sepli, A. (2017). Protectionism and trade policy instruments: An economic perspective. International Journal of Economics and Trade, 9(2), 115–129.
Akuntansi & Keuangan dan Perbankan. (2013). Determinants of foreign direct investment inflows in developing countries. Journal of Accounting and Finance Studies, 7(1), 45–60.
Al-Fadhat, F., & Handana, P. S. (2023). The political economy of local content requirements policy in Indonesia’s telecommunication manufacturing industry (2015–2020). Journal of Political Economy Studies, 15(3), 201–219.
Ananda Salsabila, A., & Aryani, M. I. (2023). Black market smartphones and regulatory challenges in Indonesia. Journal of Consumer Protection and Technology, 4(2), 88–101.
Febrina, M., Fajrian, R., Azzahra, N., & Gifarly, M. (2025). Public perception of the Indonesian
government policy on the cancellation of iPhone 16 release. Journal of Public Policy and Communication, 6(1), 1–15.
Hardenta, R., Prasetyo, D., & Kurniawan, A. (2023). Local content requirements as non-tariff measures in Indonesia: Policy challenges and trade implications. Journal of International Trade Policy, 11(2), 134–150.
Isaac, J. (2025). Industrial policy uncertainty and employment risk in Indonesia’s electronics sector.
Asian Industrial Review, 8(1), 40–55.
Kadek, I., Ukpbj, B., Wilayah, N., & Barat, N. (2022). Evaluation of local content policy implementation in public procurement. Indonesian Journal of Public Administration, 10(2), 95–108.
Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2018). International economics: Theory and policy (10th ed.). Pearson Education.
Lin, S.-H., & Weng, Y. (2020). Can strengthening the local content requirements meet a government’s need to raise industrial productivity and production? Journal of Applied Economics, 23(1), 45–62. https://doi.org/10.1080/15140326.2020.1714025
List, F. (1904). The national system of political economy. Longmans, Green, and Co.
Macek, A. (2005). Foreign direct investment theories and development perspectives. Economic Studies Review, 12(3), 67–82.
Mona Siahaan. (2025). Smartphone market dynamics in Indonesia: Trends and projections.
Indonesian Digital Economy Journal, 9(1), 12–25.
Muhammad Iqbal. (2025). Illegal smartphone distribution and IMEI enforcement in Indonesia.
Journal of Telecommunications Policy, 7(2), 77–90.
Muh Raihan Muzakki. (2024). Regulatory impact on smartphone sales performance in Indonesia.
Journal of Business and Trade Analysis, 5(4), 155–168.
Pratama, P. A., & Adnyana, W. (2024). Local content requirements and smartphone industry policy in Indonesia. Journal of Administrative Law and Policy, 6(3), 210–224.
Puspitawati, D. (2023). Indonesia’s trade policy dilemma: Between multilateral commitments and protectionism. Journal of Global Political Economy, 14(2), 101–118.
Ravianti, S. (2024). Foreign investment and economic development in emerging economies. Journal of Development Economics and Policy, 13(1), 55–70.
Salvatore, D. (1993). International economics (4th ed.). Macmillan Publishing Company.
Setiyaningtyas Hasna Wijayati, A., & Haqqi, H. (2021). Protectionism through local content regulation in public procurement. Journal of Public Policy Studies, 9(2), 89–103.
Theresia Agatha. (2024). Trade regulation and market access in Indonesia’s technology sector.
ASEAN Economic Policy Journal, 6(2), 130–145.
World Trade Organization. (n.d.). Non-tariff measures and trade policy. WTO Publications