JAKARTA — Indonesia has banned the marketing and sale of the iPhone 16 model due to Apple’s failure to comply with local investment regulations, according to its industry ministry.

Southeast Asia’s largest economy has a young, tech-savvy population, with more than 100 million people under the age of 30, but Apple still doesn’t have an official store in the country, forcing those who wish to purchase their products on resale platforms.

Indonesia’s Industry Ministry spokesperson said imported phones of the iPhone 16 model launched in September could not be released in the country because Apple’s local unit had not met the requirement according to which 40% of phones had to be made from local parts.

An employee of an authorized reseller selling Apple products opens a store in Jakarta on October 29, 2024. Indonesia has banned the sale of the iPhone 16 due to the tech giant’s failure to comply with local regulations investment. AFP PHOTO

“iPhone 16 devices imported by registered importers cannot yet be sold in the country,” ministry spokesperson Febri Hendri Antoni Arif said in a statement on Friday.

“Apple Indonesia has not fulfilled its investment commitment to obtain…certification.”

To reach this percentage, Apple must invest in Indonesia and source Indonesian materials for iPhone components, according to local media.

Apple did not respond to a request for comment from Agence France-Presse (AFP).

The ministry said new Apple phones could be imported into Indonesia provided they were not released into the market.

It is estimated that only 9,000 units of the new model have entered the country, which has a population of around 280 million.

Indonesia’s market share of smartphone shipments in the second quarter of the year was dominated by China’s Xiaomi, Oppo and Vivo, as well as South Korea’s Samsung, according to Counterpoint Research.

In April, Apple Chief Executive Tim Cook visited Indonesia as the tech giant explores ways to invest in Southeast Asia’s largest economy and diversify its channels. sourcing outside of China.

He met then-President Joko Widodo and his successor Prabowo Subianto for talks after the iPhone maker announced it would expand its developer academies in the country.