Indonesia Bans iPhone 16 After Apple Fails Local Investment Test

Indonesia has banned Apple’s newest iPhone, hindering sales in one of the world’s largest countries.

The ban on sales of the iPhone 16 came after Apple apparently failed to meet the government’s requirements for 40% local content in tablets and handsets, the Financial Times (FT) reported Monday (Oct. 28), citing a statement from Indonesia’s Ministry of Industry.

“iPhone 16s imported by registered importers cannot be sold in the country since PT Apple Indonesia has yet to fulfill its investment commitment to obtain ‘local content level’ certification on innovation,” the ministry said, in reference to Apple’s local operations.

According to the FT report, Indonesia has a history of using trade regulations to protect its domestic industries, though its local content requirement has turned off investors. The report notes that Indonesia — the fourth most populous nation in the world — offers Apple a huge potential market.

The report cites figures from the industry ministry showing that Indonesia has 354 million active mobile phones, while the country’s population is around 280 million. Around 9,000 iPhone 16s have entered Indonesia through passenger luggage since the phone went live in September.

“These phones entered legally, but will be illegal if traded in Indonesia,” the ministry said.

The government says Apple had pledged a $108 million investment, but has so far invested $94 million. The ministry has said Apple’s investments in Indonesia are relatively small compared to its sales in the country.

PYMNTS has contacted Apple for comment but has not yet gotten a reply.

In other Apple news, PYMNTS wrote recently about the 10th anniversary of Apple Pay, in connection with PYMNTS Intelligence’s annual report on the payment method.

That research shows that in the U.S., Apple Pay usage and adoption have increased across the past decade as barriers such as a lack of contactless payment infrastructure have fallen away. Now, Apple makes it all but impossible to activate a new iPhone with installing Apple Pay.

“Apple Pay’s challenge, as with any new way to pay, is to expand beyond the early adopters to the mainstream consumers — who still think cards work just fine,” PYMNTS wrote.

“Apple Pay has a massive 54% share of the in-store mobile wallet usage (the other 46% is captured by PayPal, Google, Cash App, Walmart, Samsung, and Venmo), but it’s still a pretty small pond. Physical cards remain its most formidable competitor. At least for right now.”