In a surprising turn of events, Indonesia has officially banned the sale and operation of Apple’s iPhone 16 within its borders. On Tuesday, Industry Minister Agus Gumiwang Kartasasmita declared that any iPhone 16 functioning in the country is deemed “illegal,” sending ripples through the tech community and raising questions about Apple’s investment commitments in the region.
Minister Kartasasmita issued a clear warning to consumers, stating, “If there is an iPhone 16 that can operate in Indonesia, that means that I can say, the device is illegal. Do report it to us.” This proclamation underscores the seriousness of the ban, as the Indonesian government emphasizes that no International Mobile Equipment Identity (IMEI) certification has been issued for the device.
The ban stems from Apple’s unfulfilled investment promises in Indonesia, as reported by The Jakarta Post. The tech giant has invested 1.48 trillion rupiah (approximately $95 million) of its pledged 1.71 trillion rupiah, leaving a gap of 230 billion rupiah (around $14.75 million). This shortfall has significant implications for Apple’s ability to operate in the Indonesian market.
“We, the Ministry of Industry, are yet to be able to issue permits for the iPhone 16 because there are still commitments that Apple must realise,” Minister Kartasasmita explained from his office. This situation reflects broader concerns regarding foreign investment and compliance with local regulations.
Earlier this month, Kartasasmita pointed out that the iPhone 16 cannot be sold in Indonesia because the extension of the TKDN (Domestic Component Level) certification is still pending. The TKDN certification requires companies to meet a 40% local content mandate in order to sell products in Indonesia. This requirement is closely linked to Apple’s commitment to establishing research and development facilities, referred to as Apple Academies, within the country.
The timing of this announcement is crucial, following Apple CEO Tim Cook’s visit to Jakarta in April. During this visit, Cook discussed potential manufacturing opportunities with Indonesian President Joko Widodo, indicating that Apple was considering setting up local manufacturing facilities. However, the current situation raises concerns about the feasibility of such commitments without compliance with local regulations.
Since its global launch on September 20, 2024, the iPhone 16, along with other new Apple products like the iPhone 16 Pro lineup and Apple Watch Series 10, has not been available in Indonesia. Industry Ministry spokesperson Febri Hendri Antoni Arif confirmed that the TKDN certification application for the iPhone 16 is under review but is contingent on Apple meeting its investment obligations.
The ban on the iPhone 16 poses significant implications for Indonesian consumers eager to access the latest technology. It also raises questions about Apple’s strategy in one of Southeast Asia’s largest markets. As the company navigates this regulatory landscape, the pressure is on to fulfill its investment commitments to regain access to the lucrative Indonesian market.
Consumers are left in a bind, torn between their desire for the latest Apple technology and the reality of legal restrictions. As they await clarity on Apple’s next steps, the Indonesian government remains firm in its stance on enforcing local regulations to protect its market and encourage domestic investment.
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