Indonesia Blocks iPhone 16 Sales Due to Local Content Rules
Apple is currently unable to sell its newest iPhone 16 in Indonesia. Why because it didn’t meet the country’s local content requirements. According to Indonesia's Ministry of Industry all smartphones sold in the country must be made with at least 40% locally produced components. But the iPhone 16 didn’t meet this standard.
Local Manufacturing Rule
Indonesia requires that at least 40% of any smartphone's components sold there be locally made. Since the iPhone 16 doesn’t meet this requirement Apple has been blocked from selling it in the country.
Investment Gap
Apple had committed to investing 1.7 trillion rupiah (around $108 million) in Indonesia but has only invested 1.5 trillion rupiah ($95 million) so far. This shortfall has added to the challenges in meeting local regulations and led to the ban.
Sales Restrictions
Apple’s older iPhone models can still be sold. Only the iPhone 16 can’t be bought or sold in Indonesia. Those who have already brought iPhone 16 units into the country are only allowed to use them for personal use.
Government Encouragement for Local Partnerships
The Indonesian government hopes Apple will work with local manufacturers to meet the 40% requirement. In April Apple CEO Tim Cook visited Indonesia and mentioned the company’s interest in exploring local production options.
Why It Matters
With Indonesia’s large and tech savvy population the country is an attractive market for tech brands. To reduce dependency on imports the Indonesian government has been pushing for more local production. This is a standard that companies like Samsung and Xiaomi have already met by setting up factories there.
This situation highlights the hurdles some global companies face with local content laws. Apple’s challenges in meeting both content and investment requirements in Indonesia have created a significant barrier in one of Southeast Asia’s biggest markets. The Indonesian government remains firm in encouraging foreign companies to invest in the local economy to support growth.
