Indonesia, iPhone 16 Sales Virtually Banned... What Is the Reason?

Not Sold on Official Website and Overseas Purchases Blocked
Government: "Apple Must Invest as Promised to Obtain Sales Rights"

Indonesia is reportedly effectively banning the domestic sale of the iPhone 16, which was globally launched on the 20th of last month. The reason for the sales ban is interpreted as a measure taken because Apple did not invest the amount initially promised to Indonesia.

On the 26th (local time), local media including Antara News reported that although the iPhone 16 was globally launched on the 20th of last month, it has not yet been sold in Indonesia. The iPhone 16 is not being sold on Apple's official Indonesian website, and the Indonesian government is also said to have blocked overseas purchases of this product.

Customers visiting the Apple Store in Myeongdong, Jung-gu, Seoul, are seen checking out Apple's first AI smartphone, the iPhone 16, which was released domestically on the 20th of last month. Photo by Jinhyung Kang aymsdream@

The Indonesian government has not officially issued a sales ban order for the iPhone 16. However, local media view this situation as resulting from Apple not investing the amount it initially promised. Recently, Agus Gumiwang Kartasasmita, Minister of Industry, told local media, "Apple must complete the remaining investment of 240 billion rupiah (approximately 24.2 million USD) out of the promised 1.71 trillion rupiah (about 152.4 billion KRW) to obtain the domestic sales rights for the iPhone 16." The government also claims that because Apple has not fulfilled its investment commitments, it has failed to meet the requirements for issuing the Domestic Component Level Certificate (TKDN) necessary for the domestic sale of the iPhone 16. To obtain the TKDN, 40% of the iPhone 16’s components must be made in Indonesia.

Meanwhile, the iPhone 16 series was simultaneously launched last month on the 20th in 59 countries and regions, including South Korea and the United States. Notably, the iPhone 16 is showing strong sales performance in China compared to the iPhone 15. On the 18th, market research firm Counterpoint Research reported that the iPhone 16 is gaining popularity in China compared to the launch of the iPhone 15 last year. According to the report, sales of the iPhone 16 in China during the first three weeks after its launch were about 20% higher than the sales volume during the first three weeks after the iPhone 15 launch.

As a result, Apple reclaimed the second position in the Chinese smartphone market. On the 25th, the Hong Kong South China Morning Post (SCMP) cited the latest data from research firm IDC, reporting that Apple held a 15.6% market share in China’s smartphone market in the third quarter of this year, ranking second behind Vivo (18.6%). Huawei closely followed Apple with a 15.3% market share. Apple had fallen to sixth place in the second quarter.