iPhone 16 officially banned from sale because Apple "broke its promise" to invest.
The Indonesian government has just issued a ban on the sale and use of the iPhone 16, along with other new Apple products such as the Apple Watch Series 10, because Apple has not fully fulfilled its investment commitment in the country.
iPhone 16 banned from sale in Indonesia.
According to Indonesia's Industry Minister Gumiwang Kartasasmita, Apple has committed to investing $109 million in the country's infrastructure and local sourcing, but has only delivered about $95 million so far.
"Any iPhone 16 operating in Indonesia is illegal," Minister Kartasasmita stressed.
The ban affects iPhone 16s that have already been sold, making it difficult for tourists to bring the device to Indonesia.
Indonesia requires foreign companies to meet a 40% local content ratio to do business in the country. Apple has pledged to set up research and development centers (Apple Academy) in Indonesia but has not fully implemented it.
Apple's failure to fulfill its investment commitment has prevented the Indonesian Ministry of Industry from issuing IMEI certification for the iPhone 16, a mandatory condition for selling the device in the country.
It is unclear what Apple will do to address this issue. However, the ban is affecting iPhone 16 sales in a potential market like Indonesia.
reviously, Apple received the TKDN certification, which required at least 40% domestic components in products. However, that certification has expired and Apple needs to renew it through local manufacturing, app development, and innovation programs.
In addition, Mr. Agus also said that Apple has not reached the investment commitment level as promised. The company has invested 1.48 trillion rupiah (about 94.53 million USD), lower than the 1.71 trillion rupiah (about 109.6 million USD) it previously committed.
Apple has implemented a number of innovative development programs, including opening Apple Academies in the region, with plans to open a fourth academy in Bali in the future.
If the sales ban is enforced, Indonesian consumers may have to buy the iPhone 16 from abroad, leading to higher device costs. It is expected that the import fee for a S$1,299 (about $994) iPhone 16 could be as high as $155 when brought back to Indonesia from Singapore.
