What domestic parts requirement blocked Apple’s iPhone 16?

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Indonesia’s Domestic Parts Requirement Blocked Apple’s iPhone 16 Sales

Indonesia has maintained a ban on the marketing and sale of the iPhone 16 model due to Apple's non-compliance with local investment regulations. These regulations mandate that 40 per cent of a phone's components must be sourced domestically to be eligible for sale within the Indonesian market. This requirement specifically pertains to the components that constitute the actual gadget, not accessories.
AirTag Factory Investment Does Not Fulfill Local Content Rules

Apple had pledged a significant investment of US$1 billion to establish an AirTag factory on Batam island, a project anticipated to supply 65 per cent of the global demand for this tracking accessory. However, the Indonesian Ministry of Industry clarified that an AirTag is considered an accessory and not a fundamental component or part of a gadget. Consequently, this investment does not satisfy the government's requirement for a minimum percentage of locally sourced parts within the mobile devices themselves.
Lack of Domestic Component Level Certification

The Ministry of Industry has not issued the necessary domestic component level certificate for Apple products, particularly the iPhone 16. This certification is contingent upon meeting the 40 per cent local parts requirement. Without this official validation, Apple is unable to legally market and sell its latest iPhone models in Indonesia, irrespective of other investment proposals.
Previous Investment Offer Rejected

Prior to the current deadlock, Apple had put forth an offer to increase its investments in Indonesia by US$100 million, aiming to have the sales ban on the iPhone 16 lifted. However, the Indonesian government declined this proposal in November. The government has indicated that the decision to allow iPhone 16 sales rests with Apple, which needs to respond to a counterproposal made by Indonesian officials.

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What domestic parts requirement blocked Apple’s iPhone 16?

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