Indonesia has imposed a ban on the sale and usage of Apple's latest iPhone 16 and Apple Watch Series 10, citing unmet investment promises by the tech giant. The Indonesian government has highlighted Apple's failure to fulfil its financial commitments as the primary reason for this decision.
Apple had initially committed to investing approximately IDR 1.71 trillion in local research and development infrastructure in Indonesia. However, the company has only invested IDR 1.48 trillion, leaving a shortfall of around $14.75 million.
As a result, the Indonesian Ministry of Industry has withheld the International Mobile Equipment Identity (IMEI) certification, crucial for authorising device sales in the country. Without this certification, the iPhone 16 and Apple Watch Series 10 cannot be legally sold or operated in Indonesia.
Indonesia's Industry Minister, Agus Gumiwang Kartasasmita, has issued a stern warning regarding the operation of iPhone 16 devices within the country. He urged the public to report any such devices, stating that they would be considered illegal if found. The minister emphasised the importance of adhering to local laws and regulations.
The ban also underscores Indonesia's strict local content requirements. Foreign companies are required to ensure at least 40 per cent local content in their products to receive the Domestic Component Level (TKDN) certification, necessary for sales in Indonesia. This can be achieved through local manufacturing, software development, or establishing R&D facilities. Apple's delayed investment has hindered the certification process, leading to the current situation.
Despite the ban, tourists and airline crew are permitted to bring and use up to two iPhone 16 series devices for personal use while in Indonesia. However, these devices cannot be sold locally, and any attempt to do so would breach the ban.
Apple has not yet responded to the Indonesian government's decision, and it remains uncertain when or if the company will fulfil the remaining investment to lift the ban. Until then, the ban is expected to remain in effect until Apple meets its financial commitments in full.