Understanding the iPhone 16 Ban in Indonesia Due to Unfulfilled Investment and Certification Issues
Apple’s iPhone 16, which was launched globally last month, has been banned officially in Indonesia following an order from the local government. The blacklisting comes due to Apple’s reported unfulfilled investment promises in the South East Asian country.
Moreover, the ban also applies to other Apple devices released this fall, including the Watch Series 10. The country’s move not only affects local consumers but also tourists who have purchased the premium devices.
Indonesia’s Industry Minister Agus Gumiwang Kartasasmita declared that any iPhone 16 operating in Indonesia is illegal, warning consumers against purchasing the device from abroad.
“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,” Kartasasmita said. He confirmed that no International Mobile Equipment Identity (IMEI) certification has been issued for the device.
Investment Issue
The ban results from Apple’s incomplete investment commitments in Indonesia. Of the promised $109 million, the tech giant has invested only $95 million, leaving a gap of $14.75 million.
The suspension reportedly covers both the sale and operation of iPhone 16 models and extends to units that are already sold.
“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 realize,” Kartasasmita explained at his office.
Certification Issue
Earlier this month, the minister had remarked that “Apple’s iPhone 16 cannot be sold in Indonesia yet because the extension of the TKDN (Domestic Component Level) certification is still pending, awaiting further investment realization from Apple.”
The TKDN certification mandates companies to meet a 40% local content value requirement to sell their products in Indonesia. The certification process is directly linked to Apple’s promise to establish research and development facilities, known as Apple Academies, in the country.
Failed Talks
The ban comes despite Apple CEO Tim Cook’s visit to Jakarta in April, where he discussed establishment of potential manufacturing plans in the country with Indonesian President Joko Widodo.
However, no agreements took place between the two parties, prompting the Indonesian authorities to take the step.
Industry Ministry spokesperson Febri Hendri Antoni Arif confirmed that the TKDN certification application for iPhone 16 is under review but remains contingent on Apple fulfilling its investment commitments.
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It is yet to be seen as to what Apple does to resolve the impasse.
For now, customers in Indonesia will have to wait longer to purchase the new iPhone models as several things depend on Apple’s complete realization of the commitment.
