Apple iPhone 16 sales blocked in Indonesia due to local parts regulations

JAKARTA (Reuters) – Technology giant Apple Inc will not be allowed to sell its iPhone 16 smartphones in Indonesia because they do not meet national regulations on the use of locally manufactured components, the industry ministry said.

Indonesia requires some smartphones sold domestically to contain at least 40% locally produced parts, and the iPhone 16 does not meet that requirement, ministry spokesman Febri Hendri Antoni Arief said in a statement on Friday.

“Imported iPhone 16 hardware cannot be sold in the country as Apple Indonesia has failed to honor its investment commitment to obtain local content certification,” he said, adding that phones can still be imported from abroad for personal use as long as users pay the necessary taxes.

Apple did not immediately respond to a request for comment.

The company’s first iPhone 16 phones were launched in September.

The top two smartphone makers in Indonesia in the first quarter of 2024 are China’s OPPO and South Korea’s Samsung, research firm IDC said in May.

Indonesia has a huge tech-savvy population, making the Southeast Asian country a key target market for technology-related investments.

During Apple CEO Tim Cook’s visit to Indonesia last April, Indonesian Industry Minister Agus Gumiwang Kartasasmita expressed hope that the tech giant would increase its local offerings by collaborating with domestic companies.

Companies typically increase domestic demand through such local partnerships or by sourcing parts domestically.

Apple does not have production facilities in Indonesia, but since 2018 it has been creating app developer academies, the total cost of which, including the new academy, is 1.6 trillion rupiah ($101.8 million).

($1 = 15,720,0000 rupees)

(Reporting by Stanley Widianto; Editing by Helen Popper)