A few months after its launch, sales of the Apple iPhone 16 continue to soar worldwide. The device boasts several key features, including enhanced Apple AI intelligence, which has been praised for its uniqueness compared to previous models.

However, in a major setback for Apple, Indonesia has taken the significant step of prohibiting the marketing and sale of the iPhone 16 due to Apple's failure to comply with local investment regulations. According to the country's industry ministry, Apple has not met the requirement that 40 per cent of the components used in the iPhone must be sourced locally.

Despite being Southeast Asia's largest economy and home to a young, tech-savvy population—over 100 million people under the age of 30—Apple has yet to establish an official retail store in Indonesia. This absence forces consumers to rely on resale platforms for their products. 

Febri Hendri Antoni Arif, a spokesman for the industry ministry, stated, “The iPhone 16 devices imported by registered importers cannot yet be marketed domestically. Apple Indonesia has not fulfilled its investment commitment to obtain... certification.” To meet local production requirements, Apple must invest in Indonesia and procure materials from local sources.

Sale Restrictions

While the new iPhones can still be brought into the country for personal use, they cannot be sold commercially. The ministry estimates that only about 9,000 units of the iPhone 16 have entered Indonesia, which has a population of around 280 million.

In the second quarter of the year, Indonesia's smartphone market was primarily dominated by Chinese brands like Xiaomi, Oppo, and Vivo, along with South Korea's Samsung. Apple's CEO, Tim Cook, visited Indonesia in April to explore investment opportunities and diversify supply chains away from China. During his visit, he engaged with then-President Joko Widodo and his successor, Prabowo Subianto, discussing plans to expand Apple's developer academies in the country.

As it stands, without fulfilling local investment requirements, Apple's entry into the Indonesian market remains hampered, leaving the iPhone 16 unavailable for consumers.