Apple can’t sell the new iPhone in the world’s 4th-most-populous country

• Apple has been barred from selling the iPhone 16 in Indonesia.
• Indonesia’s government said Apple hadn’t met a requirement to source 40% of its parts locally.
• Apple’s share of the Indonesian market has grown to about 10% in recent years.

The Indonesian government blocked Apple from selling its iPhone 16 in the country because it didn’t meet local regulations.

The latest iPhone, launched in September, didn’t pass the Southeast Asian nation’s requirement that 40% of the material in smartphones and tablets sold nationally come from Indonesian producers. The policy is intended to protect domestic manufacturers and attract foreign investment.

Indonesia’s Ministry of Industry said in a statement on Friday that iPhone 16s could not be imported for sale as Apple hadn’t fulfilled its investment commitment to obtain “local content level” certification.

The ministry said 9,000 iPhone 16s had already entered the country. It added that it would monitor the circulation of the devices and that if traded, they’d be classed as illegal.

Apple’s older products can still be sold in Indonesia, and visitors with iPhone 16s can use them as personal devices.

This month, the ministry said Apple’s investment of 1.5 trillion rupiah, or about $95 million, was short of its 1.7 trillion rupiah commitment, the Financial Times reported.

Apple has built four developer academies in Indonesia. In April, CEO Tim Cook said the company was investigating the feasibility of establishing local manufacturing facilities as it diversifies production away from China.

With over 280 million citizens, Indonesia is the fourth-most-populous nation and a growing market for Apple.

The technology-market research firm Counterpoint estimated the iPhone maker’s share of the premium-smartphone market in Indonesia increased by 6% year over year to make up 40% of sales of smartphones costing more than $600.

But the ban is unlikely to significantly dent Apple’s sales. The FT report suggests that of the 235 million smartphones Apple sold globally last year, the company sold only about 3.4 million in Indonesia.

Apple did not immediately reply to a request for comment made outside normal working hours.

It’s set to be a big week for Apple, which is due to report earnings and expected to introduce software and hardware updates including its Apple Intelligence features.