Indonesia has banned the sale of Apple’s latest model, the iPhone 16, because the company does not meet local investment requirements. Indonesia’s Ministry of Industry said that Apple’s local subsidiary PT Apple Indonesia “has not fulfilled its investment commitments,” which is a prerequisite for selling the new iPhone in the country.
Kimberly Cao told the Wall Street Journal.
State media Antara reported that Indonesia’s Industry Minister Agus Gumiwan Kartasasmita said Apple’s investment would be 240 billion rupiah, or about $108.9 million, needed to obtain the license to sell the iPhone 16. It was reported that he said that there was not enough Rupiah.
Under Indonesia’s policy aimed at supporting domestic industry and reducing dependence on imported products, businesses must meet certain requirements to use domestically sourced goods and services. This can be done through a variety of means, including investment and hiring local workers.
This ban applies to the sale of iPhone 16 units traded in the country.
The mobile phone market in Southeast Asia’s largest economy has become a lucrative one, benefiting from population growth and rising disposable income. According to the ministry, there are an estimated 354 million devices in active use in Indonesia.
Mac Daily News opinion: CEO Tim Cook said in April that Apple would consider building an assembly facility in Indonesia after a meeting with President Joko Widodo, who said Apple would consider building an assembly facility in Indonesia by partnering with local companies. He said he hopes to increase local production. Mr. Cook did not provide a timeline for investing in the country.
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