Apple Faces Continued Ban on iPhone 16 Sales in Indonesia Despite $1 Billion Investment

Politics

Apple Faces Continued Ban on iPhone 16 Sales in Indonesia Despite $1 Billion Investment

3 weeks ago 9 views

News sources:

SCMP

REUTERS

Apple Faces Continued Ban on iPhone 16 Sales in Indonesia Despite $1 Billion Investment

Credited from: SCMP

Apple continues to face challenges in selling its iPhone 16 in Indonesia, despite securing a $1 billion investment to establish local production. The country's industry minister, Agus Gumiwang Kartasasmita, stated on January 8 that Apple has not complied with the regulations requiring smartphones sold in Indonesia to contain at least 35% locally-made parts (Reuters, SCMP).

Last year, following Apple's failure to meet these requirements, the Indonesian government implemented a ban on iPhone 16 sales. Though the company has announced plans to create a facility for producing its Airtag tracking devices on Batam island, this does not fulfill the local content criteria for the iPhone (Reuters).

Minister Agus emphasized that the newly planned facility does not directly contribute to the production of iPhone parts, noting, "There is no basis for the ministry to issue a local content certification." He mentioned that the government has a counterproposal for Apple to meet regulatory compliance. Failure to adhere may lead to sanctions against the tech giant, though such measures would be considered a last resort.

Apple has yet to establish manufacturing sites in Indonesia, which has a consumer base of approximately 280 million people. Since 2018, the company has initiated application developer academies in the country.