Apple iPhone 16 is banned in Indonesia

Indonesia announced an official ban on Apple’s iPhone 16, as well as the company’s other recent products, restricting the sale and operation of these devices in the country.

This measure was motivated by Apple’s failure to fulfill investment promises. Industry Minister Agus Gumiwang Kartasasmita declared that any iPhone 16 in operation within Indonesian borders is considered “illegal” and advised consumers not to purchase the device from abroad.

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Lack of investment and certification issues

The ban on the iPhone 16 happens because Apple did not fully comply with a financial commitment that had been agreed between the company and the Indonesian government. The company had committed to investing 1.71 trillion rupiah (approximately US$109 million) to fuel the country’s local content and infrastructure, but only invested a partial amount of that amount, 1.48 trillion rupiah (about US$95 million), which ended up generating a gap of 230 billion rupiah (approximately US$14.75 million).

This difference prevented the Ministry from issuing the International Mobile Equipment Identity (IMEI) certification, which is essential for the legalization of mobile devices in the country.

“We still cannot issue permissions for the iPhone 16 because there are commitments that Apple needs to make,” explained Kartasasmita. The ban also applies to other recently launched Apple products, such as the iPhone 16 Pro and the Apple Watch Series 10, which had their global launch on September 20.

Local content requirements and Apple’s commitments

The Indonesian government is requiring 40% local content for foreign companies, a condition for obtaining TKDN (Domestic Component Level) certification, which is required for legal operation in the country.

For Apple, this certification is linked to promises to establish research and development centers, known as Apple Academies, in various regions of Indonesia, with the aim of promoting knowledge and local employment.

Earlier this month, Kartasasmita mentioned that Apple’s certification renewal is on hold due to incomplete compliance with investment requirements. He stated that the “iPhone 16 cannot yet be sold in Indonesia because the extension of the TKDN certification is pending, pending the realization of Apple’s promised investments.”

Ministry spokesperson Febri Hendri Antoni Arif confirmed that although Apple has already requested TKDN certification for the iPhone 16, the process is still under review and will only move forward when investment obligations are met.

Discussions with Tim Cook and possible expansions

In April, Apple CEO Tim Cook visited Jakarta and met with President Joko Widodo to discuss the company’s possible expansion plans in Indonesia. During that visit, Cook suggested that Apple could consider creating local manufacturing facilities to strengthen its operations in the country.

However, since then, no formal agreement has been reached, and Indonesian regulatory authorities continue to wait for investment commitments to be finalized.

With the ban in place, it remains to be seen how Apple will deal with the Indonesian government’s requirements. The measure could affect local consumers and tourists who were considering purchasing or bringing the iPhone 16 to the country.

Source: economictimes