Apple Inc (NASDAQ:AAPL, ETR:APC) iPhone 16 series and Apple Watch 10 series sales have been effectively banned in Indonesia by the government because the company failed to meet local investment commitments.
Indonesia requires certain smartphones sold in the country to contain at least 40% of “domestic content,” which can be achieved by using materials sourced in the country or employing local workers.
The iPhone 16 does not meet this requirement, the Indonesian Ministry of Industry said on Friday. Older iPhones can still be sold in Indonesia.
Apple had previously pledged a $109 million (IDR 1.71 trillion) investment in located research and development (R&D) facilities. It has invested just $95 million (IDR 1.48 trillion) to date, according to the Indonesia Ministry of Industry.
Tourists and airline crew members will be allowed to bring in and use up to two iPhone 16 series devices in the country but are not allowed to sell those devices in Indonesia.