Indonesia has banned the marketing and sale of the iPhone 16 due to Apple’s failure to meet local investment regulations, as announced by the industry ministry. Despite being the largest economy in Southeast Asia with a tech-savvy population of over 100 million under 30, Apple does not have an official store in Indonesia, pushing consumers to purchase from resale platforms.

The industry ministry’s spokesman, Febri Hendri Antoni Arif, stated that imported iPhone 16 models, launched in September, cannot be marketed domestically because Apple Indonesia did not meet the requirement that 40% of the phones be made from local parts. “The iPhone 16 devices imported by registered importers cannot yet be marketed domestically,” Arif said. “Apple Indonesia has not fulfilled its investment commitment to obtain certification.”

To meet this requirement, Apple must invest in Indonesia and source materials locally for iPhone components, as reported by local media. The ministry indicated that new Apple phones could be brought into Indonesia as long as they are not traded commercially, estimating that around 9,000 units of the new model have entered the country, which has a population of approximately 280 million.

In the second quarter, the Indonesian smartphone market was dominated by China’s Xiaomi, Oppo, Vivo, and South Korea’s Samsung, according to Counterpoint Research. In April, Apple CEO Tim Cook visited Indonesia to explore investment opportunities and diversify supply chains away from China. During his visit, he met with then-president Joko Widodo and his successor Prabowo Subianto, and announced plans to expand Apple’s developer academies in the country.