Indonesia Blocks iPhone 16 Sales Over Local Content Rules Compliance

Apple’s iPhone 16 models will not be sold in Indonesia due to non-compliance with the country’s local content regulations, Indonesia’s Industry Ministry announced. The Southeast Asian nation requires smartphones sold domestically to incorporate at least 40 per cent locally manufactured parts. 

The ministry revealed that Apple has not met these standards for its latest model, released in September. Although the iPhone 16 is barred from retail in Indonesia, individual buyers can still import the phones from abroad for personal use, provided they pay the necessary import taxes.

Apple, a global leader in technology, has no manufacturing facilities in Indonesia, though it has made significant investments in local tech initiatives. Since 2018, the company has allocated about 1.6 trillion rupiah (USD 101.8 million) to establish app developer academies in the country.

During a visit to Indonesia in April by Apple CEO Tim Cook, the country’s Industry Minister, Agus Gumiwang Kartasasmita, expressed hopes for expanded local content partnerships. Many companies operating in Indonesia meet local production requirements by either collaborating with domestic firms or sourcing components locally, but Apple has yet to meet this threshold with its hardware.

Indonesia’s growing and technologically engaged population is a key market for global tech companies, making compliance with local regulations critical for success. Apple’s competitors, such as China’s OPPO and South Korea’s Samsung, have gained strong footholds in Indonesia by adhering to local content rules. 

In the first quarter of 2024, both brands ranked as the top smartphone vendors in Indonesia, according to research firm IDC.