AsianFin -- Indonesia has blocked Apple Inc. from selling its latest iPhone 16 models, citing unmet local investment requirements in Southeast Asia’s largest economy. According to the Ministry of Industry’s October 25 statement, Apple's local subsidiary, PT Apple Indonesia, has yet to satisfy the country’s mandate for 40% domestic content in smartphones and tablets. However, Apple’s older devices remain available for sale in Indonesia.

The setback comes as Apple experiences strong sales for its flagship product in other Asian markets, including China. While Apple currently ranks outside Indonesia's top six smartphone brands, the country represents a potential growth opportunity, with a young, tech-savvy population in a $1 trillion economy. Government data shows Indonesia has over 350 million active mobile devices, surpassing its population of 270 million.

The ministry noted that, as of early October, Apple’s investments in Indonesia totaled only 1.5 trillion rupiah ($95 million), short of its pledged 1.7 trillion rupiah. While Apple has opened four developer academies in the country instead of establishing a local manufacturing facility, CEO Tim Cook mentioned in April that the company is exploring the feasibility of local production.