Indonesia has banned the sale of the iPhone 16 because Apple did not meet the investment requirements set by the government. The Ministry of Finance stated that Apple's latest smartphone generation failed to meet the condition of 40% local content in phones and tablets. PT Apple Indonesia, Apple's local branch, has so far been unable to demonstrate compliance with this investment obligation.
The Indonesian industry authority emphasized that iPhones imported by registered importers may not be sold in the country until PT Apple Indonesia obtains certification for local content. "iPhone 16s that were legally brought in through passenger luggage are now illegal in trade," the authority added.
Indonesia has long used trade regulations to attract foreign investment, promote local production, and protect domestic industries. However, critics often describe these regulations as protectionist, as the requirements for local content vary across different sectors and may deter potential investors.
Despite the strict regulations, Indonesia represents a huge market for Apple.
The sales bans will take effect shortly after the inauguration of the new president, Prabowo Subianto, who promises to implement more investment-friendly policies. Under the previous government of Joko Widodo, Indonesia had already attempted to increase the value of its export goods and encourage domestic production by banning the export of nickel ore. These measures led to tensions with the World Trade Organization, which classified the ban as against the rules.
Apple currently has four developer academies in Indonesia but does not have any production facilities in the country. In April, President Widodo urged the company in a meeting with CEO Tim Cook to establish a factory or research and development center in Indonesia. Cook responded that Apple would consider the request without making any concrete commitments.
The sales ban on the iPhone 16 could significantly restrict Apple's access to one of the world's largest markets and highlight the need for the company to reconsider its investment strategy in Southeast Asia.
