Apple iPhone 16 sales banned in Indonesia over local investment issue
Indonesia has imposed a ban on the sale of Apple’s latest iPhone 16 models due to the company’s failure to meet local investment requirements. The Indonesian Ministry of Industry stated that Apple’s local subsidiary, PT Apple Indonesia, “has not fulfilled its investment commitment,” which is a prerequisite for selling the new iPhone model in the country.
Kimberley Kao for The Wall Street Journal:
State media Antara reported that Indonesia’s industry minister, Agus Gumiwang Kartasasmita, said Apple’s investment is 240 billion rupiah short of the 1.71 trillion rupiah, or around $108.9 million, needed to obtain the license to sell the iPhone 16 units.
Under an Indonesian policy aimed at supporting domestic industries and reducing dependence on imported products, companies have to meet set requirements for using goods or services sourced from within the country. This can be done via various means, including investments or hiring local workers.
The ban applies to sales of iPhone 16 units transacted within the country…
The cellphone market in Southeast Asia’s largest economy is a lucrative one, benefiting from a large, growing population and rising disposable incomes. There are an estimated 354 million devices in active use in Indonesia, according to the ministry.
MacDailyNews Take: Apple will consider building an assembly facility in Indonesia, CEO Tim Cook said in April after meeting President Joko Widodo, who hoped the tech giant would increase its local production by partnering with domestic firms. Cook did not provide a timeline for investments into the country.
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