Indonesia's local content rules have dealt a blow to Apple's iPhone 16. The tech giant's failure to comply with the regulations has resulted in a ban on the sale of the new smartphone in the country.
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| Apple's expansion plans in Indonesia may be hindered by local content regulations. The company may need to rethink its strategy to comply with the country's rules and avoid similar issues in the future. Image Courtesy: Apple |
Jakarta, Indonesia - October 28, 2024:
Apple's latest iPhone 16 series has been barred from sale in Indonesia due to its failure to comply with the country's local content requirements. The Indonesian Ministry of Industry confirmed that the smartphones do not meet the 40% local content threshold.
"Imported iPhone 16 hardware cannot be marketed in the country, because Apple Indonesia has not fulfilled its investment commitment to earn a local content certification," said Febri Hendri Antoni Arief, a ministry spokesperson.
While the ban applies to commercial sales, individuals can still import iPhone 16 devices for personal use, provided they adhere to customs regulations and pay necessary taxes.
Apple has yet to respond to the news. The tech giant's iPhone 16 series was unveiled in September.
Indonesia, with its large and tech-savvy population, is a significant market for smartphone manufacturers. In the first quarter of 2024, OPPO and Samsung were the top two smartphone brands in the country, according to IDC research.
During a visit to Indonesia in April 2023, Apple CEO Tim Cook met with Indonesian Industry Minister Agus Gumiwang Kartasasmita. The minister expressed hopes that Apple would increase its local content by partnering with domestic firms.
To meet local content requirements, companies often establish partnerships with local manufacturers or source components domestically. While Apple has no manufacturing facilities in Indonesia, it has invested in app developer academies, totaling 1.6 trillion rupiah ($101.8 million) since 2018.