iPhone 16, launched globally in September, now faces a commercial block in Southeast Asia’s largest economy, which demands stricter compliance with its investment laws to encourage domestic manufacturing. Indonesia has imposed a ban on the sale of Apple’s newly released iPhone 16 due to the tech company’s failure to meet local production requirements, according to the nation’s industry ministry.
Apple Yet To Satisfy Ministry
Apple has a strong consumer base in Indonesia, especially among the tech-savvy youth; with over 100 million people under 30, the demand for high-end smartphones is robust. However, the absence of an official Apple store has forced Indonesian consumers to rely on third-party or resale platforms.
Apple’s current operations have yet to satisfy the ministry's requirement that 40 per cent of components for imported devices be sourced locally. To reach this threshold, Apple would need to both increase investments in local manufacturing and integrate Indonesian-sourced materials in iPhone production.
As reported by The Guardian, The ministry spokesperson, Febri Hendri Antoni Arif, confirmed on Friday that the iPhone 16, although permitted for personal use, is not authorised for commercial sale. “Apple Indonesia has not fulfilled its investment commitment to obtain certification,” Arif stated, emphasising that registered importers bringing in the devices cannot legally market them within Indonesia.
As of early October, reports indicate that Apple has invested 1.5 trillion rupiah of its promised 1.7 trillion rupiah commitment, though the company has yet to meet its obligations fully.
9,000 iPhone 16 Units In Country
Despite the restriction, around 9,000 units of the iPhone 16 have reportedly entered the country, though any commercial sale of these devices remains prohibited. Indonesia has previously enforced similar restrictions to encourage local production across multiple industries. For example, the country has restricted imports of over 4,000 items, from laptops to raw materials, with varying results.
Some firms scaled back operations in response, citing supply shortages, while Indonesia’s ban on mineral ore exports has successfully catalyzed growth in its domestic battery industry.
Apple Trailing In Indonesia Production
Apple’s limited investment in Indonesia’s production sector contrasts with the growing success of other smartphone manufacturers. According to Counterpoint Research, China’s Xiaomi, Oppo, and Vivo, along with South Korea’s Samsung, lead Indonesia’s smartphone market. Meanwhile, Indonesia remains an attractive but under-served market for Apple, which enjoys strong market penetration in other parts of Asia. The country has around 350 million active mobile phones, even surpassing its population of roughly 280 million.
In April, Apple’s CEO, Tim Cook, met with then-President Joko Widodo and his successor, Prabowo Subianto, in a bid to strengthen Apple’s ties with Indonesia. During his visit, Cook emphasised the company’s plans to expand its developer academies and explore investment opportunities to diversify its supply chain away from China.
However, until Apple can fully meet Indonesia’s local production requirements, the ban on its iPhone 16 devices highlights the challenges the company faces in one of Asia’s fastest-growing markets.