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Indonesia Blocks iPhone 16 Sales Over Local Content Rules

Apple’s latest iPhone 16 will not be permitted for sale in Indonesia due to the device’s failure to meet local content requirements, the country’s Industry Ministry announced. Indonesian regulations mandate that smartphones sold domestically must include at least 40% locally-produced components. Ministry spokesperson Febri Hendri Antoni Arief stated on Friday that Apple Indonesia’s iPhone 16 failed to comply with this rule, disqualifying it from local sales. However, the ministry clarified that individuals could still bring the iPhone 16 into the country for personal use if they pay the necessary import taxes.

“Imported iPhone 16 devices are prohibited from entering the Indonesian market as Apple Indonesia has not met its commitment to earn the local content certification,” Arief added. Apple has not yet responded to inquiries about the restriction.

The iPhone 16, which debuted in September, faces competition from OPPO and Samsung, which were Indonesia’s top smartphone brands in early 2024, according to research firm IDC. Indonesia, with its large, technology-driven population, remains a crucial market for global tech investments.

During Apple CEO Tim Cook’s visit to Indonesia last April, Industry Minister Agus Gumiwang Kartasasmita expressed hopes that Apple would increase local content in its devices by collaborating with Indonesian firms. Such partnerships or local sourcing help companies meet Indonesia’s domestic content rules.

Although Apple does not manufacture in Indonesia, the company has invested in local app development, establishing academies since 2018 at a cumulative cost of 1.6 trillion rupiah ($101.8 million). However, without locally manufactured components, Apple’s iPhone 16 remains barred from formal sales in Indonesia.

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