When Apple Inc. did not comply with Indonesia’s rule that at least 40% of the phone’s parts be produced locally, the company was banned from selling the iPhone 16 there. Febri Hendri Antoni Arief, a spokesman for Indonesia’s industry ministry, explained that the iPhone 16 was unable to comply with this standard and, as a result, was not allowed for sale in the nation.
Even with this limitation, anyone can still use the iPhone 16 for personal use in Indonesia as long as they pay the required import fees. However, Apple Indonesia has failed to meet the investment requirements needed to obtain certification for local content, which must be obtained to conform to Indonesian laws.
This situation shows Indonesia’s efforts to increase its own manufacturing and attract international businesses to put money into the nation’s manufacturing industry. The government wants to promote growth in the economy and increase job creation by requiring a greater number of local products.
If Apple is unable to comply with these limitations, it will lose access to a major Southeast Asian market for the next iPhone 16. Although resolute consumers might still purchase the phones for their own use, this could reduce Apple’s official sales channels and visibility in Indonesia, possibly affecting its market share.
This situation shows foreign tech firms’ difficulties in conforming to regional investment standards and managing local laws.
