Apple’s iPhone 16 series, launched in early September, has already hit a significant roadblock in Indonesia. The Indonesian government recently announced a ban on the sale and even the operation of iPhone 16 models within the country.
This restriction also applies to other new Apple products, like the Watch Series 10. The decision stems from Apple’s failure to meet its agreed-upon investment commitment, a requirement for obtaining certification for device sales in Indonesia.
According to Indonesia’s Minister of Industry, Apple had pledged to invest $109 million in local infrastructure, aiming to increase its presence in the region. However, reports indicate that Apple has invested only about $95 million so far, leaving a shortfall of $14 million.
iPhone 16 is yet to receive necessary certification to be sold in the country
This has prevented the Indonesian Ministry of Industry from granting the required IMEI certification, effectively blocking Apple’s products from being legally sold in the country. For those unfamiliar, this certification is vital as it enables phones to operate with the local network; without it, the iPhone 16 models are not legally recognized and cannot access cellular networks.
In his statement, Minister Gumiwang Kartasasmita made it clear that any iPhone 16 found in operation within Indonesia is considered “illegal.” He urged citizens to report any active units and advised against purchasing iPhone 16 models from international sources, which would still fall under the ban.
Apple’s shortfall in investment has deeper implications due to Indonesia’s regulations for foreign companies. The government mandates a 40% “local component” requirement, which companies typically meet through investments in manufacturing, research, and local development.
Apple had initially proposed establishing research and development facilities to satisfy this criterion. While Apple CEO Tim Cook visited Jakarta earlier this year to discuss potential expansion plans, no new agreements have been reached, and the pending issues remain unresolved.
As a result, Apple’s failure to fulfill this commitment has placed its products at a standstill in one of Southeast Asia’s fastest-growing markets. The Indonesian authorities are awaiting Apple’s next steps, leaving consumers and potential buyers in limbo until Apple addresses the investment requirements to lift the ban.
(Source)
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