Maintaining a ban on the sale of Apple's (AAPL, Financial) iPhone 16, the Indonesia Industry Ministry Monday declared that a $100 million investment plan from the business is inadequate to meet local content criteria. Effective since November, the restriction results from a rule mandating at least 40% of locally produced components for sold handsets. For the same reasons Alphabet's (GOOGL, Financial) Google Pixel phones are also banned.
At a news briefing, Industry Minister Agus Gumiwang Kartasasmita said Apple's plan lacked fairness when weighed against its expenditures in Vietnam and Thailand. Agus stated, "We have done an assessment, and this has not met principles of fairness," adding that the ministry is also asking for a fresh investment promise from Apple through 2026.
Apple has no manufacturing footprint in Indonesia but from 2018 it has run application-developer academies there. For older iPhone devices, these academies have been deemed sufficient for local content rules. Indonesia also cited Apple's unmet $10 million investment commitment by 2023. Apple didn't answer inquiries for comments right away.
