Indonesia’s local content regulations, introduced in 2017, require smartphones sold in the country to contain at least 40% domestic content, obtained either by sourcing local materials, employing Indonesian workers or creating production facilities. production in the country.

Even though Apple has invested about 1.5 trillion rupiah ($95 million) in Indonesia, it still falls short of the 1.7 trillion rupiah commitment required to meet regulatory criteria. Instead of manufacturing locally, Apple has opened four developer academies in Indonesia so far, which focus on training local talent. However, these initiatives were not enough to meet the government’s demands.

CEO Tim Cook has previously mentioned that Apple is exploring the feasibility of establishing a manufacturing presence in Indonesia, but it remains unclear whether this will happen soon enough to lift the current ban. In contrast, competitors like Samsung and Xiaomi have already set up local manufacturing facilities to comply with Indonesian regulations, giving them an advantage in the local market.