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iPhone 16 banned from sale in Indonesia after Apple fails to invest enough locally
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iPhone 16 banned from sale in Indonesia after Apple fails to invest enough locally

THE line up, and the other devices announced by Apple this fall are forbidden of sales in Indonesia. That’s because Apple failed to meet its local investment commitments of approximately $15 million.

It is said to have invested 1.48 trillion ($94 million) of the 1.71 trillion rupees ($109 million) it had committed to spend on local supply and/or infrastructure to meet needs from Indonesia. Since Apple has not reached the investment threshold, the Ministry of Industry has not issued the required certifications so that the latest Apple products can be sold there. The ban does not affect older Apple devices, which the company can still sell in the country.

Under Indonesia’s local content rules, certain devices sold in that country must contain at least 40 percent “national content.” This goal can be achieved, for example, by using domestically sourced materials, having manufacturing plants or employing local workers. Apple has established four developer academies in Indonesia and, as of the beginning of the year, was considering . Samsung and Xiaomi are among the smartphone makers that now have factories in the country.

By not investing the remaining $15 million needed to reach the threshold, Apple cannot sell its latest products in Southeast Asia’s largest economy, which could prove shortsighted. Even though it is not the most popular smartphone brand in Indonesia (it is not in the top six, Bloomberg notes), Apple has room to grow there. Indonesia is said to have a $1 trillion economy and an increasingly tech-savvy young population. The government also reported that there were 350 million active mobile phones in the country, which has a population of 270 million.

According to authorities, there are around 9,000 iPhone 16s in Indonesia. These were mailed domestically or hand-delivered by the crew and passengers. Bloomberg reports that personal use of the phones is permitted, but they cannot be resold. As of 2020, all cell phones purchased abroad and imported are subject to tax and must be registered with the Indonesian government.