Apple’s latest iPhone 16 will not be available for sale in Indonesia as it doesn’t meet the country’s local content requirement for smartphones, set at 40 percent domestically manufactured components.
Indonesia requires foreign tech firms to include 40 percent locally produced parts in smartphones sold domestically. Apple’s current iPhone 16 model fails to meet this requirement, Reuters news report said.
Apple is considering making huge investment in the Southeast Asian smartphone market for ensuring future growth. In fact, Apple CEO Tim Cook made visit to Singapore and Indonesia highlighting Apple’s commitment and interest in the region.
Febri Hendri Antoni Arief, spokesperson for Indonesia’s Industry Ministry, confirmed the restriction, noting Apple has not fulfilled its commitment to earn local content certification. However, individual consumers can still import the device for personal use with applicable taxes.
Apple lacks manufacturing facilities in the country. Apple has invested around 1.6 trillion rupiah ($101.8 million) in app developer academies since 2018.
Indonesian Industry Minister Agus Gumiwang Kartasasmita expressed hope for increased Apple investment during CEO Tim Cook’s visit in April, encouraging partnerships with local firms to meet content requirements.
In Indonesia, Chinese brand OPPO and South Korea’s Samsung led smartphone sales in early 2024, according to IDC. The size of the smartphone market in Indonesia was 10 million units during the first quarter of 2024.
Apple does not feature in the top five list for smartphone brands in Indonesia. Oppo (19.9 percent), Samsung (17.3 percent), Transsion (16.1 percent), Vivo (15.8 percent) and Xiaomi (15.6 percent) are the leading smartphone brands in Indonesia during the first-quarter of 2024, according to IDC report.
Baburajan Kizhakedath
