In a move that has disrupted Apple’s newest product lineup in Indonesia, the government has banned the sale and use of the iPhone 16 and Apple Watch Series 10, citing unmet investment obligations from Apple.
The ban not only halts new sales but also extends to units already in circulation, causing challenges for both local users and international visitors who may bring their devices into the country.
Apple’s Unmet Commitments Cause Certification Denial
The Indonesian Ministry of Industry, led by Minister Gumiwang Kartasasmita, is enforcing this ban as a consequence of Apple’s failure to meet its agreed-upon investment of $109 million (about 1.71 trillion rupiah) in Indonesia’s local infrastructure and sourcing initiatives.
Apple has reportedly only delivered around $95 million (1.48 trillion rupiah), leaving a shortfall of $14 million (230 billion rupiah).
This shortfall has led the ministry to withhold the necessary IMEI (International Mobile Equipment Identity) certifications, effectively preventing the devices from being legally sold or activated in the country.
Indonesia’s strict regulations require international tech companies to meet a 40% local content requirement, a policy designed to boost domestic economic development.
Apple had previously committed to establishing research and development facilities, known as “Apple academies,” to comply with these regulations. However, the lack of full investment has led Indonesia to ban these products until the commitments are fulfilled.
Can You Still Buy the iPhone 16 in Indonesia?
With the iPhone 16 and Apple Watch Series 10 prohibited in Indonesia, Apple’s future in the region remains uncertain. The ban impacts Apple’s revenue and strains relations with the Indonesian government and its consumers.
The ban does not fully restrict the iPhone 16 and Apple Watch 10 use in Indonesia. If a device is legally purchased outside the country and imported for personal use (not for resale), users can still operate it, provided they pay the necessary import taxes.
This exemption offers a workaround for individuals who wish to use the device without violating the ban.
Whether Apple will address the shortfall remains to be seen, but the situation highlights the rising importance of fulfilling local investment pledges in emerging markets.
