Apple’s latest iPhone 16 series has encountered a significant hurdle in the Indonesian market. The Indonesian government has recently imposed a ban on the sale and operation of the iPhone 16 models within the country. This restriction also extends to other new Apple products, including the Watch Series 10.
The root cause of this ban lies in Apple’s failure to fulfill its investment commitment to the Indonesian government. As a prerequisite for device certification and sales in Indonesia, foreign companies, including Apple, are required to invest a specific amount in local infrastructure.
iPhone 16 Indonesia ban: Why did it happen?
According to reports, Apple had pledged to invest $109 million. However, the company has only invested approximately $95 million thus far, leaving a shortfall of $14 million. This shortfall has prevented the Indonesian Ministry of Industry from granting the necessary IMEI certification, which is crucial for devices to operate on local networks.
Minister of Industry, Gumiwang Kartasasmita, has clarified that any iPhone 16 found in operation within Indonesia will be considered illegal. The minister has urged citizens to report any active units and advised against purchasing iPhone 16 models from international sources, as these devices would still be subject to the ban.
Indonesia’s regulations for foreign companies mandate a 40% “local component” requirement, which companies typically fulfill through investments in manufacturing, research, and development. Apple had initially proposed establishing research and development facilities to meet this criterion. While Apple CEO Tim Cook visited Jakarta earlier this year to discuss potential expansion plans, no concrete agreements have been reached.
As a result of this impasse, Apple’s products are facing significant challenges in one of Southeast Asia’s most promising markets. The Indonesian authorities are closely monitoring the situation, and the future of Apple’s products in Indonesia hinges on the company’s ability to address the investment requirements and secure the necessary certifications.
