JAKARTA, Oct 28 (Reuters) - Tech giant Apple Inc ( AAPL )

will not be allowed to sell its iPhone 16 smartphones

in Indonesia because they have not met the country's rules on

the use of locally made components, the industry ministry said.

Indonesia requires certain smartphones sold domestically to

contain at least 40% of parts manufactured locally and the

iPhone 16 has not met the requirement, ministry spokesperson

Febri Hendri Antoni Arief said in a statement issued on Friday.

"Imported iPhone 16 hardwares cannot be marketed in the

country, because Apple Indonesia has not fulfilled its

investment commitment to earn a local content certification," he

said, adding that the phones can still be brought from abroad

for personal use as long as users pay the necessary taxes.

Apple ( AAPL ) did not immediately respond to a request for comment.

The company's iPhone 16 phones were first released in

September.

The top two smartphone makers in the first quarter of 2024

in Indonesia were Chinese firm OPPO and South Korean firm

Samsung, research firm IDC said in May.

Indonesia has a huge, tech-savvy population, making the

Southeast Asian nation a key target market for tech-related

investment.

During a visit by Apple's ( AAPL ) CEO Tim Cook to Indonesia last

April, Indonesia's Industry Minister Agus Gumiwang Kartasasmita

said he hoped the tech giant would increase its local content by

partnering with domestic firms.

Companies usually increase the domestic requirement through

such local partnerships or by sourcing parts domestically.

Apple ( AAPL ) has no manufacturing facilities in Indonesia, but

since 2018 it has been setting up app developer academies, which

including the new academy have a total cost of 1.6 trillion

rupiah ($101.8 million).

($1 = 15,720.0000 rupiah)