Jakarta. Indonesia will only lift its local content policy for some sectors in its trade deal with the US, according to chief negotiator Airlangga Hartarto, although Jakarta did not say which American products would get the special treatment.

A joint statement freshly issued by the White House revealed that Jakarta was willing to exempt US companies and originating goods from local content requirements. This major regulatory change was among the concessions that Jakarta made to have US President Donald Trump drop his reciprocal tariffs from 32 percent to 19 percent. Neither the joint statement nor the fact sheet provides the specifics of these eased curbs. 

However, this is the same set of rules that had barred Apple from selling its iPhone 16 in Indonesia—the tech giant’s largest Southeast Asian market. Indonesia requires companies to include domestically sourced parts before they can enter its market, something that the government believes can spur economic growth and job creation.

Airlangga, the senior minister who leads the negotiations, told reporters in Jakarta that the local content relaxation meant for American companies would not target all sectors, but only the ones that both countries had agreed on. 

“There are sectors for that [exemption]. So it will be per sector,”  Airlangga said on Wednesday.

He did not provide the details on which sector would get this treatment as he rushed to his car for a meeting at the state palace.

When Trump launched his tariff blitz in April, it was not long after his team published their report that listed the trade barriers that Indonesia had set that they deemed as unfair. The report showed that the local content rule on technology products was what had bothered Trump.

Indonesia has required 4G-LTE enabled devices to contain 35 percent local content, while the mandatory percentage can reach 40 percent for 4G-LTE base stations. Wireless equipment must possess 50 percent local content, while the mandatory minimum percentage is lower for TV and set-top boxes stands at 20 percent, according to the report. Washington admitted that they had been pressing Indonesia to lift these barriers.

The report also came after Indonesia played hardball with Apple. Jakarta had previously blocked Apple’s iPhone 16 after the company failed to meet the 35 percent local content requirement. The California-based company even sent its top brass to Indonesia to negotiate with the government, which eventually resulted in Apple setting up an accessory factory in Batam. The investment plans take place via Shenzhen-based vendor Luxshare-ICT, with the plant set to begin production by the end of this year. 

Riyatno, a deputy at the Investment Ministry, told the press last week that the US deal would not affect the Batam investment commitment. "We are optimistic about [Apple's] investments, especially since the company has purchased [land] in Batam. I think they will stick to the investment plan," he said at the time.