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iPhone 17 Ban: Why Indonesia May Block Apple's Upcoming Smartphone

iPhone 17 ban in Indonesia looms as the country enforces strict local manufacturing rules. Despite Apple’s $1 billion investment proposal, compliance with the 40% local sourcing requirement remains unmet.
 
iPhone 17 Ban: Why Indonesia May Block Apple's Upcoming Smartphone

iPhone 17 Ban: Indonesia is reportedly going to ban Apple's iPhone 17. This is in response to the ban on the iPhone 16 series. The company has already announced an investment proposal worth $1 billion, but the restrictions are still in place as the company hasn't met the local manufacturing requirements of Indonesia.
Why Did Indonesia Ban the iPhone 16?

Indonesia's regulations require that 40% of smartphone components be sourced locally to sell in the country. The ban on the iPhone 16 was imposed because Apple failed to comply with this rule.

Apple recently proposed setting up an AirTag manufacturing plant in Indonesia, with operations expected to begin by 2026. However, Indonesia's Industry Minister Agus Gumiwang Kartasasmita deemed the proposal insufficient, as it does not address local smartphone manufacturing needs.

Will the iPhone 17 be banned as well?

The Minister of Industry commented that the rules may apply as well to future models of iPhone 17, as the possibility of selling its future models here in Indonesia largely depends on how Apple can meet this local sourcing requirement.

Impact of the ban to Apple's Business in Indonesia

Impact of the ban to Apple's Business in Indonesia:

Indonesia is the most crucial market for Apple because of the high number of mobile phone users; the country hosts four Apple Developer Academies, but does not have an manufacturing facility.

Appel increased the investment proposal to Indonesia from $10 million to $1 billion but could not remove the ban on iPhone 16.

Also Read: Xiaomi Pad 7 Launch on January 10: How to Watch, Key Specs, and Accessories

Other Smartphones Affected

The new regulation, introduced in October 2022, has also affected other smartphone brands, such as Google Pixel devices, which failed to meet the local manufacturing requirement.

What It Means for Apple

To remain in Indonesia, Apple will have to:

Establish local manufacturing facilities for its smartphones.
Comply with the 40% local sourcing rule.

The local manufacturing requirements in Indonesia are quite stringent, and the government is unwilling to relax them. Therefore, Apple needs to focus on establishing local manufacturing units to stay in this market, which is critical for its iPhone 17 and beyond.
 

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