Indonesia has prohibited Apple from marketing and selling the iPhone 16 model due to non-compliance with local investment regulations, as stated by the Indonesian Ministry of Industry.
Despite Southeast Asia’s largest economy having a significant population of young, tech-savvy individuals with over 100 million people under the age of 30, Apple does not have an official store in the country. Those interested in Apple products resort to purchasing them from resale platforms.
A spokesperson for Indonesia’s Ministry of Industry revealed that imported iPhone 16 model phones released in September cannot be sold in the country because Apple’s local division fails to meet the requirement of 40% of the phones being manufactured with local parts.
“iPhone 16 devices imported by registered importers are currently not permitted for sale in the country,” stated ministry spokesperson Febri Hendry Antoni Arif on Friday.
“Apple Indonesia…has not fulfilled its investment commitments to obtain certification.”
To meet this criteria, Apple would need to invest in Indonesia and source materials for iPhone parts from the country, as reported by local media outlets. Apple had previously pledged Rp 1.7 trillion in investments in Indonesia but had only invested Rp 1.5 trillion by the beginning of the month.
Apple has not responded to inquiries from the Guardian.
The ministry clarified that new Apple mobile phones can be brought into Indonesia as long as they are not intended for commercial trade.
An estimated 9,000 new models have been imported into the country of approximately 280 million people. Although these products entered the country legally, selling them in Indonesia would be considered illegal.
Past bans imposed in Indonesia, similar to the one on Apple, have been aimed at promoting domestic production. However, the outcomes have been mixed.
According to Counterpoint Research, China’s Xiaomi, Oppo, Vivo, and South Korea’s Samsung dominated Indonesia’s smartphone market shipment share in the second quarter of this year.
The absence of Apple in Indonesia signifies a missed opportunity for the company, which has experienced success in other parts of Asia. Indonesia currently has more mobile phones in use than its population.
In April, Apple CEO Tim Cook visited Indonesia to explore investment opportunities in Southeast Asia’s largest economy and diversify its supply chain away from China. He engaged in discussions with then-President Joko Widodo and his successor Prabowo Subianto after Apple announced plans to expand its developer academy in the country.
Source: www.theguardian.com
