Apple is banned from selling iPhone 16 models in Indonesia

The Ministry of Industry said in a report that the iPhone 16, launched in September, cannot be sold in the domestic market because local unit PT Apple Indonesia did not meet the country’s 40% domestic content requirement. for smartphones and tablets. declare on October 25. Older Apple products can still be sold in Indonesia.

It’s a bump in the road for Apple, which has benefited Initial sales were healthy its flagship products in other Asian markets such as China. While Apple rank In addition to the top six smartphone brands in Indonesia, this is a potential growth market with a young, increasingly tech-savvy population. The $1 trillion economy has more than 350 million active mobile phones, more than the country’s population of 270 million, according to government data.

The Ministry of Industry said in early October that Apple invested only 1.5 trillion rupiah ($95 million) in Indonesia, below its commitment of 1.7 trillion rupiah. Apple has built four developer academies in the country instead of establishing a local manufacturing facility, although CEO Tim Cook said in April that the company was considering feasibility do so.

Apple representatives did not immediately respond to a request for comment sent via email outside of regular U.S. business hours.

Rival phone makers such as Samsung Electronics Co. and Xiaomi Corp. has been established factory in Indonesia to comply with domestic content regulations introduced in 2017. Other ways to increase local content include sourcing ingredients or hiring domestic workers.

Indonesia has a long history of using trade restrictions to push foreign companies to produce more goods domestically, albeit with mixed success.

The government tightened import regulations on a range of products this year, leading to shortages of items such as laptops and car tires, and causing shortages pile at its gates. However, a prolonged ban on the export of mineral ores such as nickel has resulted grow rapidly its battery sector.

The Ministry of Industry said that so far, about 9,000 iPhone 16s have entered Indonesia, carried by passengers and crew or delivered by mail. These are for personal use only and trading is not permitted. However, this path may not be easy for interested iPhone 16 buyers. Indonesia since 2020 has required all phones purchased abroad to be registered with the government, and these phones are subject to hefty taxes.