Indonesia has banned Apple’s latest iPhone, hampering sales in one of the world’s largest countries.
The ban on the sale of the iPhone 16 comes after Apple clearly failed to meet the government’s requirement that 40% of its tablets and phones be domestically produced, the Financial Times (FT) reported, citing Indonesia’s Ministry of Industry. It was reported on Monday (October 28), citing the statement. .
Referring to Apple’s local operations, the ministry said: “iPhone 16s imported by registered importers cannot be sold in the country as PT Apple Indonesia has not yet fulfilled its investment commitment to obtain ‘local content level’ certification for innovation. I can’t.”
Indonesia has a history of using trade restrictions to protect domestic industries, but its local content requirements have driven investors away, the FT reported. The report notes that Indonesia, the world’s fourth most populous country, offers a huge potential market for Apple.
The report cites figures from the Ministry of Industry showing that there are 354 million mobile phones in operation in Indonesia, while the country’s population is approximately 280 million. Since the iPhone 16 was launched in September, approximately 9,000 iPhone 16s have entered Indonesia as passenger baggage.
“Although these mobile phones were legally imported, they are illegal when traded in Indonesia,” the ministry said.
Apple had pledged to invest $108 million, but has invested $94 million so far, according to the government. The ministry said Apple’s investment in Indonesia is relatively small compared to its domestic sales.
PYMNTS has reached out to Apple for comment, but has not yet received a response.
In other Apple news, PYMNTS recently wrote about Apple Pay’s 10th anniversary in conjunction with PYMNTS Intelligence’s Annual Payment Methods Report.
The study found that the use and adoption of Apple Pay has increased in the U.S. over the past decade as barriers such as a lack of contactless payment infrastructure have disappeared. Now, Apple has made it nearly impossible to install Apple Pay and activate a new iPhone.
“The challenge for Apple Pay, like any new payment method, is to expand beyond early adopters to mainstream consumers who still think the card is fine,” PYMNTS wrote. There is.
“While Apple Pay has a huge 54% share of in-store mobile wallet usage (the remaining 46% is accounted for by PayPal, Google, Cash App, Walmart, Samsung, and Venmo), it is still a fairly small share. It’s a swamp. Physical cards are still the strongest competitor, at least for now.”
