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iPhone 16 is banned from sale in Indonesia. Photo: Macrumors

Because the iPhone 16 does not meet the minimum 40% local content requirement, Apple cannot sell the device in Indonesia. The goal of the ban is to protect local industry and jobs.

State officials are asking Apple to increase investment and commitment to the economy.

According to Indonesian media, the Ministry of Industry met with Apple representatives on November 21 regarding a two-year, $100 million investment deal.

The money will go toward R&D and a developer academy. The company also plans to start manufacturing accessories, specifically for the Apple AirPods Max, by July 2025.

“From the government’s perspective, of course we want a bigger investment,” ministry spokesman Febri Hendri Antoni Arif told reporters.

The larger investment will help develop Indonesia's manufacturing sector and the local industry's capacity to produce devices such as chargers and accessories, he said.

While still a relatively small market for Apple, Indonesia offers growth opportunities as the world's fourth most populous country, according to analyst Le Xuan Chiew of research firm Canalys.

He sees the country’s young, tech-savvy population as a good fit for Apple’s sales expansion strategy, and it also has manufacturing and assembly potential that could help with its efforts to diversify its supply chain.

Market success requires a long-term approach. Apple’s investment demonstrates its commitment to complying with local regulations and paving the way for future growth, Chiew added.

(According to CNBC)