The Indonesian government has imposed a sweeping ban on the sale and use of Apple’s iPhone 16 models, along with other new Apple products like the Apple Watch Series 10, citing Apple’s failure to meet promised investment commitments in the country. This unprecedented move extends to devices already purchased, creating hurdles for tourists and residents alike.
Earlier this week, Industry Minister Gumiwang Kartasasmita stated that any operational iPhone 16 found in the country is deemed illegal, urging the public to report such devices. This strict stance underscores Indonesia’s commitment to enforcing its policies on foreign business investments.
The crux of the issue lies in Apple’s unfulfilled investment of $109 million USD (1.71 trillion rupiah), with a shortfall of approximately $14 million USD (230 billion rupiah). This shortcoming led Indonesia’s Ministry of Industry to withhold the necessary IMEI (International Mobile Equipment Identity) certifications, which are required for the legal sale and operation of mobile devices in the country.
The investment requirement in Indonesia stems from a mandate that foreign companies operating in the country must meet a 40% local content threshold. To comply, Apple had committed to developing local infrastructure and establishing “Apple academies” for research and development. However, delays in meeting these promises have placed Apple’s standing in jeopardy within this key Southeast Asian market.
Minister Kartasasmita emphasized that until Apple fulfills its commitments, permits for iPhone 16 sales will remain on hold. This strict enforcement showcases Indonesia’s resolve to ensure that global brands contribute meaningfully to its economic growth.
As of now, Apple has not indicated its plans to address this setback, leaving consumers and industry watchers uncertain about the future of Apple products in Indonesia.
