Apple's newly released iPhone 16 will not be allowed for sale in Indonesia, as it did not meet the local regulations on local content, according to a statement from Indonesia's Ministry of Industry.

The ministry's spokesperson, Febri Hendri Antoni Arief, said that Indonesia mandates smartphones sold domestically must contain at least 40 percent locally manufactured components. Apple's iPhone 16 did not meet this requirement, leading the government to block its domestic sale.

"Imported iPhone 16 hardware cannot be marketed in the country because Apple Indonesia has not fulfilled its investment commitment to secure local content certification," said Arief. However, he clarified that individual users could still buy the phone abroad and bring it into Indonesia, provided they pay the import taxes.

Apple has yet to respond to the ministry's announcement.

Indonesia, an important market with a large and tech-savvy population, has become a vital target for tech firms seeking investment opportunities in Southeast Asia. Industry Minister Agus Gumiwang Kartasasmita expressed hope in April during Apple CEO Tim Cook's visit that Apple would increase its local content by partnering with Indonesian firms.

Although Apple has no manufacturing facilities in Indonesia, it has invested $101.8 million in local app developer academies since 2018 to support Indonesia's tech talent.

Currently, Chinese company OPPO and South Korea's Samsung lead Indonesia's smartphone market, dominating sales in the first quarter of 2024, according to research firm IDC.

(With input from Reuters)