iPhone 16 now banned in Indonesia over Apple’s unfulfilled investment commitments

Earlier this week, the Indonesian government has banned the sale and use of iPhone 16 models in the country, alongside other Apple products released this fall, including the Apple Watch Series 10. The ban occurred because Apple failed to meet some of its investment commitments in the country (via The Economic Times).

This ban covers both the sale and operation of iPhone 16 models and extends to units already sold, creating issues for tourists. Industry Minister Gumiwang Kartasasmita stated the following:

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. 

The reason for this ban is because the country would like to force Apple to fulfill its investment promises in the nation. Apple apparently pledged $109 million USD ($1.71 trillion rupiah) for investments in Indonesia’s infrastructure and local sourcing, but has come up short on their promise, at roughly $95 million USD ($1.48 trillion rupiah).

Apple’s $14 million ($230 billion rupiah) shortcoming has prevented Indonesia’s Ministry of Industry from issuing the proper IMEI (international mobile equipment identity) certifications, which is required for the devices to be sold in the country. Minister Kartasasmita also commented:

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.

The investments in Indonesia were because the Indonesian government mandates that foreign companies meet a 40% local content requirement to operate within the country. Apple had promised to set up research and development facilities within the country, referred to as Apple academies.

It’s currently unclear whether or not Apple has a plan to move ahead from this sales ban.

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