Why Indonesia Banned the iPhone 16?
Recently, Indonesia banned Apple from selling or promoting its iPhone 16 model. Why? The reason is that Apple failed to meet the country’s investment requirements. Indonesia is a country with a very large population of tech-savvy youth, where huge demand for smartphones has been seen. However, Apple’s new model was not up to the rules of local manufacturing.
The local content requirement in Indonesia demands companies to invest locally, utilizing at least 40% of the materials used in the products in the local market. While Apple promised more than 1 trillion rupiah investment, it could not be able to meet the requirement. The Ministry of Industry, thus, put a halt to the sale of iPhone 16 to safeguard local industries and boost local manufacturing.
Apple has similarly experienced such bottlenecks in the previous years. This restriction indicates that fresh iPhone may have to take a back-seat for a while until it changes strategy and gets accommodated there. So currently, its users are in unofficial shops, as well as not even an authorized Apple store exists there in Indonesia.
Conclusion Apple’s move to expand in Indonesia represents the encouragement a country has to instill local investment. This kind of restriction must conform to the policies of the local market, especially in a tech-driven economy like Indonesia.
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