Apple has banned the sale of the iPhone 16 in Indonesia

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Indonesia has banned the sale of the iPhone 16 in the country, citing Apple's failure to meet government requirements for local investment.

Apple's latest smartphone did not meet the Southeast Asian country's requirements for 40 percent local content in mobile phones and tablets, the industry ministry said.

“iPhone 16s imported by registered importers cannot be sold in the country as PT Apple Indonesia has not yet fulfilled its investment commitment to obtain 'Local Content Level' certification for innovation,” the ministry said in a statement released on Friday, referring doing so on Apple's local company unit.

Indonesia has long used trade regulations to attract foreign investment and onshore manufacturing and to protect its domestic industries. However, some have criticized the rules as protectionist and the local content requirement – which varies by industry and requires a certain percentage of goods to come from the region – has deterred some investors.

The world's fourth most populous country is potentially a huge market for Apple products. The number of active mobile phones in Indonesia totals 354 million – more than the population of about 280 million, the industry ministry said.

The ministry added that about 9,000 units of the iPhone 16 series have entered Indonesia in passenger luggage since sales began last month. “These phones were imported legally but would be illegal if traded in Indonesia,” it said.

Earlier this month, the ministry said Apple had committed to investing 1.71 trillion rupees ($108 million), but so far it has only invested 1.48 trillion rupees. The then industry minister also said that Apple's investments in the country were relatively small compared to sales of Apple products in Indonesia.

Apple did not immediately respond to a request for comment.

The sales ban comes just days after former general Prabowo Subianto took over as Indonesia's president from Joko Widodo. He has promised investment-friendly policies.

Under Widodo's government, Indonesia enforced a ban on exports of nickel ore to boost the value of its exports – a move that forced companies to invest in onshore smelters and processing plants. The World Trade Organization said the ban was not in line with global trade rules. Prabowo said he would try to apply the so-called downstream program to other commodities.

Indonesia has previously called for more investment from Apple, which has four developer academies in the country but no manufacturing facility. Earlier this year, ministers in the Widodo government called on Apple to build a factory or research and development center because its developer academies were insufficient.

In April, Widodo asked Apple to set up production at a meeting with CEO Tim Cook in Jakarta. However, Cook made no promises. “We have discussed the president's desire to locate manufacturing in the country and we will address that,” Cook said after the meeting.