Apple faces setback: iPhone 16 banned in Indonesia

The Indonesian government has banned the sale and use of the iPhone 16 series and the Apple Watch Series 10. This decision stems from Apple’s failure to meet its investment commitments in the country. Apple had promised to invest IDR 1.71 trillion (around $109 million) to set up local research and development (R&D) facilities, but it has only invested IDR 1.48 trillion (about $95 million) so far.

As reported by the Economic times, Agus Gumiwang Kartasasmita, Indonesia’s Minister of Industry, made a strong statement about the situation: “If there is an iPhone 16 that can operate in Indonesia, it is illegal. Please report it to us.” His comments highlight the seriousness of the ban and the government’s determination to enforce it.

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Indonesia Bans iPhone 16 and Apple Watch Series 10 Over Investment Issues

Because Apple did not meet its investment goals, the Indonesian Ministry of Industry has stopped the issuance of International Mobile Equipment Identity (IMEI) certifications for the iPhone 16 and the Apple Watch Series 10. Without this certification, these devices cannot be legally sold or used in Indonesia, which classifies them as illegal.

However, there is an exception for tourists and airline crew members. They are allowed to bring in up to two iPhone 16 devices, but they cannot sell them in the country. This rule is part of a broader effort to ensure compliance with local laws.

Indonesia requires foreign companies to include at least 40% local content in their products. This is necessary for them to receive Domestic Component Level (TKDN) certification. The policy aims to strengthen the local economy. It also encourages foreign businesses to invest in manufacturing and development within the country.

To meet these requirements, companies like Apple have three options. They can manufacture products locally, develop software in Indonesia, or establish research and development (R&D) centers.

This situation illustrates the challenges foreign tech companies face when navigating Indonesia’s regulations. The government strictly enforces local content rules. This approach aims to bolster local industries and reduce reliance on imported technology. As global tech giants look to expand into emerging markets, understanding and following local laws will be crucial for their success.

In summary, the ban on the iPhone 16 and Apple Watch Series 10 highlights the importance of investment commitments in Indonesia. Apple’s future in the country now relies on its ability to meet these commitments and comply with local regulations.

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