Indonesia Upholds Ban on iPhone 16 Sales

Indonesia has maintained its ban on the sale of Apple's iPhone 16 due to the company's failure to comply with local investment regulations, which require that at least 40% of the phone's components be produced domestically. Despite Apple proposing a $1 billion investment to establish an AirTag factory, Indonesian officials clarified that this does not fulfill the requirements for local content certification necessary to sell the iPhone 16. Industry Minister Agus Gumiwang Kartasasmita emphasized that Apple must negotiate further to meet compliance, indicating that the ongoing negotiations could lead to sanctions if no resolution is reached. The ban, which has been in place since October, is seen as part of Indonesia's strategy to enhance local production and job creation in the tech sector. While approximately 9,000 iPhone 16 units have entered the country through non-commercial means, Apple’s inability to secure local production rights is a significant setback in a market with over 280 million potential consumers. The situation remains fluid as Apple executives continue discussions with Indonesian officials.