The government of Indonesia forbids selling the new iPhone 16 on its territory.

The main reason for such a decision is that the one of the biggest corporations in the world did not fulfill its investment commitments to the local economy, Bloomberg reports. Indonesia requires that smartphones and tablets be 40% localized, but Apple failed to meet this requirement. Additionally, the company had pledged to invest 1.7 trillion Indonesian rupiah (around $108 million) but invested only 1.5 trillion rupiah ($95 million).

To increase localization, companies must either invest in the local economy or use local components and materials. Competitors of Apple, like Samsung and Xiaomi, organized factories in Indonesia to meet these requirements. Apple, however, opted to open four software development academies instead.

Older iPhone models are not affected by the ban, and personal imports are still allowed. To obtain a sales license, Apple will need to invest the remaining funds, Kita Indonesia Satu reports.

Main image: apple.com

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