Tech giant Apple will not be permitted to sell its iPhone 16 smartphones in Indonesia due to non-compliance with the country's regulations on the use of locally-produced components, according to the industry ministry.
Indonesia mandates that certain smartphones sold within the country must contain at least 40% locally manufactured parts. The iPhone 16 has not met this requirement, as stated by ministry spokesperson Febri Hendri Antoni Arief in a recent announcement.
Arief emphasized that "Imported iPhone 16 hardware cannot be marketed in the country, because Apple Indonesia has not fulfilled its investment commitment to earn a local content certification." He also noted that the phones can still be imported for personal use, provided users pay the requisite taxes.
Apple has not yet responded to a request for comment. The iPhone 16 series was initially released in September. According to research firm IDC, the top two smartphone makers in Indonesia during the first quarter of 2024 were Chinese firm Oppo and South Korean firm Samsung.
Indonesia's large, tech-savvy population makes the Southeast Asian nation a significant target market for tech investments. During a visit by Apple CEO Tim Cook to Indonesia in April, Industry Minister Agus Gumiwang Kartasasmita expressed hope that Apple would boost its local content by collaborating with domestic firms.
Typically, companies meet the domestic requirement through local partnerships or by sourcing parts locally. Apple does not have manufacturing facilities in Indonesia, but since 2018, it has been establishing app developer academies in the country.
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