The sale of the iPhone 16 is banned in Indonesia due to Apple's lack of local investment.
Indonesia has banned Apple from selling its latest devices in the country, including the iPhone 16 and the Apple Watch Series 10.
Apple's new product line, which includes the iPhone 16 and the Apple Watch Series 10, has been banned from sale in Indonesia. This decision is due to the company's failure to meet its local investment commitments, falling short by approximately $15 million. Although Apple has invested 1.48 trillion rupiah (around $94 million), it has still not reached the promised total of 1.71 trillion rupiah (approximately $109 million) that it intended to allocate for local infrastructure and supply according to the country's requirements.
As a consequence of not meeting the investment threshold, Indonesia's Ministry of Industry has not granted the necessary certifications for Apple's new products to be marketed in the territory. However, this ban does not affect the company's older devices, which continue to be sold in the country.
According to Indonesia's local content regulations, devices sold there must contain at least 40% "national content." To meet this requirement, local materials can be used, production plants can be established, or local labor can be employed. In this context, Apple has opened four developer academies in Indonesia and has expressed interest in setting up a manufacturing plant in the country since the beginning of this year. Competitors like Samsung and Xiaomi already have factories in Indonesia.
By not investing the remaining $15 million, Apple faces challenges in marketing its latest products in what is the largest economy in Southeast Asia, which could be a short-sighted decision. Although the brand is not among the most popular in the country (not in the top six, according to Bloomberg data), there are growth opportunities in a market with a $1 trillion economy and a young population becoming increasingly tech-savvy. Authorities have indicated that there are approximately 350 million active mobile phones in a country with 270 million inhabitants.
Currently, it is estimated that there are around 9,000 units of the iPhone 16 in Indonesia. These have arrived in the country through shipments or via crews and passengers. It is reported that personal use of these phones is allowed, but they cannot be resold. Since 2020, all mobile phones purchased abroad and brought into the country are subject to taxes and must be registered with the Indonesian government.
