Apple Faces Roadblock in Indonesian Market Over Local Content Rule

Apple Inc's iPhone 16 faces a sales ban in Indonesia due to failure to meet local component requirements. The country mandates smartphones to have at least 40% of parts locally manufactured. Apple plans partnerships to boost local content, despite having no manufacturing facilities in Indonesia.

Apple Inc's iPhone 16 sales in Indonesia hit a snag as the tech giant fails to meet the country's local component requirements. This decision, announced by the industry ministry, bars iPhone 16 from retail shelves, putting a dent in Apple's plans to expand in the Southeast Asian market.

Indonesia necessitates that certain smartphones include at least 40% locally manufactured parts—a benchmark the iPhone 16 has not achieved. Ministry spokesperson Febri Hendri Antoni Arief stated that while personal import of iPhone 16 is permitted, Apple's failure to secure a local content certification stalls official sales.

The development comes amid efforts by Apple to engage more deeply with the Indonesian market. Despite its lack of manufacturing sites, Apple has invested $101.8 million in setting up app development academies across Indonesia since 2018, eyeing future collaborations with local businesses to bolster compliance.

(With inputs from agencies.)