The iPhone 16, launched in September, cannot be marketed domestically as local unit PT Apple Indonesia has not fulfilled the country’s 40% local content requirements for smart phones, the ministry of industry said in a statement on Oct 25.

That’s a road bump for Apple which has otherwise enjoyed healthy sales of its flagship product, especially as demand firms up in China. Indonesia is a US$1-trillion economy, where the number of active mobile phones is estimated at over 350 million — much more than the nation’s 270 million population.

The industry ministry earlier said that Apple has only invested 1.5 trillion rupiah (US$95 million) in Indonesia, below its commitment of 1.7 trillion rupiah. Apple has been building developer academies in lieu of establishing a local manufacturing facility.

About 9,000 iPhone 16 units have so far entered Indonesia, hand-carried by passengers and crew or delivered by post, the ministry said. However, these are only allowed for personal use and cannot be traded.