Indonesia bans iPhone 16 sales over local component rules

Apple Inc.’s iPhone 16 has been barred from sale in Indonesia due to its failure to comply with the country’s 40 per cent local component 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,” said Febri Hendri Antoni Arief, a ministry spokesperson.

While the ban applies to the sale of the iPhone 16 within Indonesia, individuals can still import the device for personal use, provided they pay the necessary taxes and duties. Apple has yet to respond to the ban.

Indonesia’s smartphone market is dominated by Chinese and South Korean brands. OPPO and Samsung were the top two smartphone makers in the first quarter of 2024, according to research firm IDC.

During a visit to Indonesia in April, Apple CEO Tim Cook met with Indonesian Industry Minister Agus Gumiwang Kartasasmita, who urged the company to increase its local content by partnering with domestic firms.

Apple currently does not have any manufacturing facilities in Indonesia, but it has invested in app developer academies, totaling 1.6 trillion rupiah ($101.8 million).

Attribution: Reuters

Subediting: M. S. Salama