Just two months into its release, the iPhone 16 is already encountering hurdles. After a recent fire at its Indian production plant, the latest challenge comes from Indonesia, where the Ministry of Industry has now banned the sale of the iPhone 16. The decision, announced on October 25, points to Apple’s failure to meet Indonesia’s regulatory standards for domestic production.
Indonesia’s requirements, established in 2017, mandate that smartphone companies contribute to the local economy by maintaining a 40% domestic production value for 4G devices. While competitors like Samsung and Xiaomi have adhered to these regulations, establishing local manufacturing facilities, Apple has only invested around $95 million. This is just shy of the required $108.7 million.
Despite the sale of the iPhone 16 being banned, Indonesian consumers can still import the iPhone 16 for personal use, albeit at a premium. Since its release in September, approximately 9,000 units have been legally brought into Indonesia, yet selling them locally is now prohibited.
Apple’s approach to meeting Indonesia’s local investment criteria has differed significantly from competitors. Instead of manufacturing facilities, Apple opted to establish developer academies, launching four across the country. This focus on digital skills development has yet to satisfy Indonesia’s industrial expectations, leaving Apple’s timeline for meeting full compliance unclear.
This setback adds to the mixed reception of the iPhone 16, which launched with high anticipation around Apple Intelligence, a new AI-driven feature set. With Apple working to address both regulatory requirements in Indonesia and production issues in India, it remains to be seen how these obstacles will impact the iPhone 16’s success across Asian markets.
