Key Takeaways
- Indonesia has banned the sale of iPhone 16 models.
Because of a problem with locally made parts, Indonesia has banned Apple from selling the iPhone 16.
The US tech multinational has failed to meet the 40% local content requirement for smartphones, according to the country in Southeast Asia with the biggest economy in the region.
The Ministry of Industry retaliated against PT Apple Indonesia, the local company of the iPhone manufacturer, in a statement as reported by Bloomberg, stating that the standards had not been fulfilled.
The subsidiary has been informed that its investment obligation has not been met, as the agreed-upon 1.7 trillion rupees ($95 million) does not match the 40% standard.
The entire iPhone 16 lineup, including the iPhone 16 Pro, has been prohibited in the nation as a result; however, this will not affect individual travelers who use the gadget for personal purposes. Additionally, it is estimated that about 9,000 phones have already made their way into Indonesia, although they cannot be exchanged.
As of yet, Apple has not opened a factory in Indonesia
None of the earlier iPhone models are affected by the prohibition.
The business has not yet established any specific production facilities, even though it has established four developer academies in Indonesia. Tim Cook, the CEO of the business, hinted in April that they were thinking about building a manufacturing plant in the nation, but nothing has come of that.
Competing companies Samsung and Xiaomi have already established locations in accordance with the applicable laws, which have been in effect since 2017. These facilities are intended to increase domestic manufacturing and support the economy by improving the supply chain and providing possibilities for Indonesian workers.
Given the size of the Indonesian market—which has over 350 million active devices among 270 million people and a $1 trillion economy—the embargo is a major blow to Apple.
The new iPhone 16 has sold well worldwide, and the business doesn’t want to lose out in this profitable market, but it’s unclear how the standoff will be settled.
