Indonesia's Minister of Industry, Agus Gumiwang Kartasasmita, announced a continued ban on Apple (AAPL, Financial) from selling its iPhone 16 in the country. This decision comes despite Apple's commitment to establishing production facilities in Indonesia, including a $1 billion investment for an AirTag factory. However, the tech giant has not yet met the requirement that at least 35% of smartphone components sold in the country must be locally manufactured.
The Indonesian government is negotiating with Apple regarding the sales license for iPhone 16. Failure to comply with local investment regulations could lead to sanctions on Apple. The Indonesian market's firm stance highlights the challenges foreign companies face in adhering to local manufacturing mandates while seeking to expand in emerging markets. Apple's ongoing negotiations indicate the company’s interest in cooperating with Indonesia's industrial policies to secure its presence in the region.
