THE iPhone 16 series has been available worldwide for a few weeks now. However, it seems that Apple encountered a significant obstacle in a Southeast Asian market. Indonesia has banned the sale of iPhone 16 due to Apple’s failure to comply with local investment requirements.

For certain product categories, the Indonesian government requires manufacturers to include at least 40% “domestic content”. For example, companies could set up device factories in the Asian country to comply with this requirement. Apple, on the other hand, approaches the problem differently. The Cupertino giant is investing money in local procurement, infrastructure and others.

Indonesia banned iPhone 16 sales due to Apple’s failure to comply with local investment requirements

The local government requirement for Apple The aim was for the investment to reach at least 1.71 trillion rupees ($109 million) in total. However, Apple only invested 1.48 trillion rupees ($94 million), leaving a shortfall of around $15 million compared to the requested amount. Apple’s investments in Indonesia to try to meet the requirements include four software developer academies.

That said, after failing to make the required investments, the iPhone 16 sales have been banned in Indonesia. The local government has denied Apple the necessary license to sell such devices in the country. The ban also affects the latest Apple Watch Series 10 and other products announced by the company a few weeks ago.

Other brands, like Samsung and Xiaomi, have played it safe by setting up device factories in Indonesia. Apple has not established factories in Indonesia, likely due to the lack of popularity of iPhones in the country. In fact, Bloomberg reports that iPhones are not among the top six smartphone brands in Indonesia. Therefore, the establishment of factories would not bring significant profits to the company. However, some reports claim that Apple was considering doing so.

iPhones are not that popular in Indonesia

Indonesian representatives claim that there are around 9,000 units of the iPhone 16 series in the country. These devices can be entered into the country via imports, international shipments or as carry-on bags on flights. The government will not ban the use of such devices but will prohibit their resale. It remains to be seen whether Apple will reach an agreement with the Indonesian government to resolve the incident in the near future.