Apple cannot sell the iPhone 16 in Indonesia following a government ban for failing to meet local investment requirements.
Apple’s Indonesian arm invested around $95 million, about $15 million less than its commitment of $108 million.
Apple cannot sell iPhone 16 in Indonesia
Indonesia is not a major market for Apple. It ranks sixth in the smartphone market, with budget offerings from Samsung, Xiaomi, Vivo and others dominating sales. But like in India, many young Indonesian consumers see Apple as an aspirational brand.
In a statement issued on October 25, Indonesia’s Ministry of Industry said Apple’s local unit did not fulfill its requirement of using 40% domestic content requirements for smartphones and tablets, reports Bloomberg. Due to this, Apple failed to earn the necessary certification.
The ban only applies to the iPhone 16 and iPhone 16 Pro lineups, with Apple still allowed to sell older iPhones nationwide.
Apple CEO Tim Cook promised to look at Indonesia as a manufacturing hub in April 2024 in his meeting with the country’s president. Instead, the company built four developer academies in the country to meet the local investment requirements. However, it fell short of the $108 million figure by $15 million, leading to the ban.
iPhone 16 yet to acquire TKDN certification
Since the iPhone 16 did not receive the necessary TKDN (domestic component level) certification in Indonesia, it is illegal to use the device publicly there.
For now, travelers can carry their iPhone 16 for personal use in the country. However, they must register the phone with the customs department before doing so, which involves paying a hefty tax. The ministry said postal services, and airline passengers and crew, have imported around 9,000 iPhone 16 units into Malaysia. These units are only intended for personal use and cannot be sold.
Apple has not yet issued a statement on the iPhone sales ban in Indonesia.
