JAKARTA (Reuters) – Apple Inc Unable to Sell iPhone 16 in Indonesia

Tech giant Apple Inc (NASDAQ:AAPL) will not be allowed to sell its iPhone 16 smartphones in Indonesia due to failure to meet local component regulations, as stated by the industry ministry.

Indonesia mandates that smartphones sold domestically must contain at least 40% locally manufactured parts. According to ministry spokesperson Febri Hendri Antoni Arief, the iPhone 16 does not meet this requirement.

> "Imported iPhone 16 hardwares cannot be marketed in the country, because Apple Indonesia has not fulfilled its investment commitment to earn a local content certification," he stated. He added that while the phones cannot be sold locally, they may still be brought in for personal use if users pay the necessary taxes.

Apple did not immediately respond to a request for comment. The iPhone 16 was first released in September.

According to research firm IDC, the top two smartphone makers in Indonesia during the first quarter of 2024 were Chinese firm OPPO and South Korean firm Samsung (KS:005930).

Indonesia, with its large and tech-savvy population, is an important target market for technology investments. During a visit by Apple's CEO Tim Cook to Indonesia last April, Minister Agus Gumiwang Kartasasmita expressed hopes that Apple would increase its local content through partnerships with domestic firms.

Typically, companies enhance their domestic requirements by forging local partnerships or sourcing parts within Indonesia. Although Apple does not have manufacturing facilities in the country, it has been establishing app developer academies since 2018, with a total investment of 1.6 trillion rupiah ($101.8 million).

($1 = 15,720.0000 rupiah)