Apple’s highly anticipated iPhone 16 will not hit the shelves in Indonesia, as the tech giant has failed to comply with the country’s regulations mandating a minimum level of locally manufactured components.
According to a statement from Indonesia’s Ministry of Industry, smartphones sold domestically must contain at least 40 percent local content. The ministry’s spokesperson, Febri Hendri Antoni Arief, confirmed that the iPhone 16 did not meet this criterion, leading to a government block on its domestic sales.
“Imported iPhone 16 hardware cannot be marketed in the country because Apple Indonesia has not fulfilled its investment commitment to secure local content certification,” Arief stated. He added that while the device cannot be sold officially within Indonesia, individual consumers are still permitted to purchase the phone abroad and bring it into the country, provided they pay the necessary import taxes.
Apple has yet to issue a response regarding the government’s decision.
Indonesia, with its large and tech-savvy population, represents a significant market for global tech companies. In April, during Apple CEO Tim Cook’s visit, Industry Minister Agus Gumiwang Kartasasmita expressed hopes that Apple would increase its local content through partnerships with Indonesian firms.
While Apple does not operate manufacturing facilities in Indonesia, it has invested $101.8 million in local app developer academies since 2018, aiming to nurture the country’s tech talent.
Meanwhile, the Indonesian smartphone market continues to be dominated by Chinese company OPPO and South Korea’s Samsung, which led sales in the first quarter of 2024, according to research firm IDC.
(With input from Reuters)
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Apple's iPhone 16 blocked from Indonesian market over local parts rule
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