Apple Still Barred from Selling iPhone 16 in Indonesia

Apple remains unable to sell its iPhone 16 in Indonesia, despite agreeing to build a local production facility, as it has not met the country’s domestic content requirements, Industry Minister Agus Gumiwang Kartasasmita confirmed on Wednesday.

Indonesia’s regulations mandate that smartphones sold domestically must include at least 35% locally-made components. Apple’s planned $1 billion factory on Batam Island, set to produce Airtag tracking devices, does not meet these criteria since it does not directly contribute to iPhone component production.

“The ministry cannot issue a local content certification for Apple because the facility is unrelated to phone components,” Kartasasmita said. Without this certification, Apple cannot secure permission to sell the iPhone 16 in the country.

Indonesia’s investment minister announced the Batam factory would begin operations next year, marking a significant investment. However, Kartasasmita revealed that Apple’s proposal for “innovative investment” was met with counter-proposals from Indonesia to align with local requirements.

While Apple has no manufacturing facilities in Indonesia, it has operated application developer academies since 2018 to support local talent. With a population of 280 million, Indonesia represents a key market for the tech giant.

Discussions between Apple’s Vice President of Global Government Affairs Nick Ammann and Indonesian officials continue, but without a direct contribution to local iPhone production, the sale of the iPhone 16 remains prohibited.

Related news: https://airguide.info/?s=A330

Sources: AirGuide Business airguide.info, bing.com, etc