Apple Secures Local Content Certifications in Indonesia but Faces Additional Regulatory Hurdles

GuruFocus.com
03-07

Indonesia issued local content certificates for 20 Apple (AAPL, Financials) products on Friday, including the upcoming iPhone 16, clearing an initial regulatory requirement for the company to sell its devices in the country, Reuters reported.

    Getting the accreditation from Indonesia's industry ministry is essential for the corporation to be able to promote its newest products throughout Southeast Asia.

    Apple still needs other licenses from Indonesia's communications and digital ministries as well as the commerce ministry notwithstanding this clearance before sales may start. After Apple failed to satisfy local component criteria, the nation had already banned sales of Apple 16 devices. To encourage domestic production, Indonesia's rules mandate businesses find a proportion of components domestically.

    Apple has made more than $300 million in investments in Indonesia, including for a research and development center and component production plants. The industry minister of Indonesia said that the company's interactions with authorities were "tricky," which emphasizes the difficulties of compliance. These days, the certification includes nine tablets that satisfy local content requirements and eleven smartphone devices.

    Although Apple is a big participant in the worldwide smartphone industry, it has had trouble being very popular in Indonesia; Samsung, Xiaomi, Oppo, and Vivo lead the market in third-quarter sales.

    This article first appeared on GuruFocus.

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