Indonesia bans the sale of Apple iPhone 16, citing failure to meet relevant investment requirements

Apple Inc. faces obstacles in the Indonesian market, as the country has banned the sale of the Apple iPhone 16, citing the company's failure to meet local investment requirements. The Indonesian Ministry of Industry stated in a declaration on October 25 that the iPhone 16 cannot be sold domestically in Indonesia because Apple's local subsidiary, PT Apple Indonesia, has not met the 40% domestic production rate requirement for smartphones and tablets. Apple's older models can still be sold in Indonesia. According to Indonesian government information, Apple's investment in the country is 150 billion rupees (approximately 95 million US dollars), which is below its promised 170 billion rupees. Despite establishing four developer academies in Indonesia, Apple has not yet set up a local manufacturing plant. Apple CEO Tim Cook mentioned in April that they are exploring the possibility of setting up a factory in Indonesia. In contrast, competitors Samsung and Xiaomi have already established factories in Indonesia to comply with the local content regulations implemented in 2017. These regulations require foreign companies to produce more products locally, increase localization ratios including sourcing materials and hiring workers. While Apple's older products can still be sold in Indonesia, this ban may impact Apple's performance in the Southeast Asian market. Data shows that Indonesia has over 350 million active mobile phones, far exceeding its population of 270 million, and the country has a young population with significant potential. The Indonesian Ministry of Industry stated that as of now, around 9,000 units of the iPhone 16 have entered Indonesia through passengers, crew members, or mail, but these phones are for personal use only and cannot be traded. Since 2020, Indonesia has imposed registration and high tax requirements on phones purchased overseas, making it more challenging for consumers intending to buy the iPhone 16