Apple’s latest devices have been banned from sale in Indonesia due to the company’s failure to meet its local investment commitments. Apple had pledged to invest 1.71 trillion rupiah ($109 million) in local sourcing and/or infrastructure, but it has only invested 1.48 trillion rupiah ($94 million), leaving a shortfall of around $15 million.
As a result, the Ministry of Industry has not issued the necessary certifications for Apple’s latest products to be sold in the country. However, older Apple devices are still exempt from the ban and can continue to be sold in Indonesia.
The ban is due to Indonesia’s local content rules, which require devices sold in the country to contain at least 40 percent “domestic content.” This can be achieved by sourcing materials locally, setting up manufacturing plants, or employing local workers. Apple has made some efforts to comply with these rules, including establishing four developer academies in Indonesia.
Despite this, Apple’s failure to meet the investment threshold has significant implications for its business in Indonesia. The country has a large and growing economy, with a youthful population that is increasingly tech-savvy. Indonesia is home to over 350 million active mobile phones, and the government has reported that the country has a population of 270 million.
Interestingly, officials estimate that there are around 9,000 iPhone 16 units currently in Indonesia, which have been either mailed to the country or brought in by hand. While personal use of these phones is permitted, they cannot be resold. The Indonesian government has also imposed taxes and registration requirements on mobile phones brought into the country since 2020.
