Indonesia has officially banned Apple’s iPhone 16, restricting its sale and operation within the country over the company’s unfulfilled investment promises. Industry Minister Agus Gumiwang Kartasasmita declared on Tuesday that any iPhone 16 operating within Indonesia’s borders is “illegal.” He further urged consumers against purchasing the device from abroad, stating, "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."
Investment Shortfall Leads to Certification Issues
The Ministry’s decision to ban the iPhone 16 stems from Apple’s partial completion of its investment commitment in Indonesia. Apple initially pledged to invest 1.71 trillion rupiah (approximately $109 million), intending to boost local content and infrastructure, but has so far invested only 1.48 trillion rupiah (around $95 million).
The shortfall of 230 billion rupiah (roughly $14.75 million) has prevented the Ministry from issuing the necessary International Mobile Equipment Identity (IMEI) certification, a requirement for device legality in Indonesia. Kartasasmita explained, “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 ban also includes other recently released Apple products, such as the iPhone 16 Pro series and the Apple Watch Series 10, following the global launch of these devices on September 20.
Local Content Requirements and Apple’s Commitments
The Indonesian government mandates that foreign companies meet a 40% local content requirement, as part of the Domestic Component Level (TKDN) certification process, to operate within the country. For Apple, this certification is directly tied to its promise of setting up research and development facilities, commonly referred to as Apple Academies, across Indonesia.
Earlier this month, Kartasasmita indicated that Apple’s certification renewal was pending due to incomplete investment requirements. He stated that “Apple’s iPhone 16 cannot be sold in Indonesia yet because the extension of the TKDN certification is still pending, awaiting further investment realisation from Apple.”
A Ministry spokesperson, Febri Hendri Antoni Arif, confirmed that while Apple has applied for the TKDN certification for the iPhone 16, the application is under review and will only proceed upon fulfillment of the company’s investment obligations.
Discussions with Apple CEO Tim Cook
The investment situation follows Apple CEO Tim Cook’s visit to Jakarta in April, where he met with President Joko Widodo to discuss the company’s possible expansion plans in Indonesia. During this visit, Cook hinted that Apple would “look at” establishing local manufacturing facilities to support its operations within the country. However, since then, no new agreements have been solidified, and Indonesia’s regulatory authorities continue to await Apple’s full compliance with its commitments.
Implications for Apple in Indonesia
As the restriction remains in place, it is unclear how Apple plans to address the Indonesian government’s requirements. In the meantime, the ban may affect tourists and consumers who were considering purchasing or bringing the iPhone 16 into Indonesia. The country’s strict certification policies signal Indonesia’s focus on ensuring that international businesses contribute meaningfully to its economy and local industries.
Investment Shortfall Leads to Certification Issues
The Ministry’s decision to ban the iPhone 16 stems from Apple’s partial completion of its investment commitment in Indonesia. Apple initially pledged to invest 1.71 trillion rupiah (approximately $109 million), intending to boost local content and infrastructure, but has so far invested only 1.48 trillion rupiah (around $95 million).
The shortfall of 230 billion rupiah (roughly $14.75 million) has prevented the Ministry from issuing the necessary International Mobile Equipment Identity (IMEI) certification, a requirement for device legality in Indonesia. Kartasasmita explained, “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 ban also includes other recently released Apple products, such as the iPhone 16 Pro series and the Apple Watch Series 10, following the global launch of these devices on September 20.
Local Content Requirements and Apple’s Commitments
The Indonesian government mandates that foreign companies meet a 40% local content requirement, as part of the Domestic Component Level (TKDN) certification process, to operate within the country. For Apple, this certification is directly tied to its promise of setting up research and development facilities, commonly referred to as Apple Academies, across Indonesia.
Earlier this month, Kartasasmita indicated that Apple’s certification renewal was pending due to incomplete investment requirements. He stated that “Apple’s iPhone 16 cannot be sold in Indonesia yet because the extension of the TKDN certification is still pending, awaiting further investment realisation from Apple.”
A Ministry spokesperson, Febri Hendri Antoni Arif, confirmed that while Apple has applied for the TKDN certification for the iPhone 16, the application is under review and will only proceed upon fulfillment of the company’s investment obligations.
Discussions with Apple CEO Tim Cook
The investment situation follows Apple CEO Tim Cook’s visit to Jakarta in April, where he met with President Joko Widodo to discuss the company’s possible expansion plans in Indonesia. During this visit, Cook hinted that Apple would “look at” establishing local manufacturing facilities to support its operations within the country. However, since then, no new agreements have been solidified, and Indonesia’s regulatory authorities continue to await Apple’s full compliance with its commitments.
Implications for Apple in Indonesia
As the restriction remains in place, it is unclear how Apple plans to address the Indonesian government’s requirements. In the meantime, the ban may affect tourists and consumers who were considering purchasing or bringing the iPhone 16 into Indonesia. The country’s strict certification policies signal Indonesia’s focus on ensuring that international businesses contribute meaningfully to its economy and local industries.
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