Indonesia Bans iPhone 16 over Unfulfilled Commitments from Apple

• Indonesia has banned the sale of iPhone 16.
• The Ministry of Industry didn't issue IMEI certificates required for phone sales.
• This was done because Apple didn't fulfill its investment commitments in the country.

Indonesia has banned the sale of iPhone 16 in the country, making it illegal to use the device within its borders. The ban also extends to other Apple products launched during the recent Apple event, such as the Apple Watch Series 10.

Now, this doesn't only cover the sale of new units but also includes iPhone 16 models already sold. This means that if you're in Indonesia and using an iPhone 16, you're engaging in an illegal activity. This is especially problematic for tourists who own the device.

This has been done because Apple didn't fulfill its investment commitment in the country. The company has pledged an investment of $109 million in Indonesia. However, it has only invested $95 million so far, marking a shortfall of $14 million.

Indonesia has a 40% Local Content Requirement (LCR) for Apple devices. This means that 40% of all input parts used in the device must be manufactured locally in Indonesia. This policy helps the government boost employment and manufacturing within the country.

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.' - Gumiwang Kartasasmita, Ministry of Industry

Apple had plans to establish local development and research units in Indonesia, which hasn't been realized so far.

As a result of this, the country's Ministry of Industry didn't issue IMEI (international mobile equipment identity) certifications for iPhone 16, which are required to sell the device in the country.

Apple's Indonesian Market

Apple is the third-largest smartphone seller in Indonesia with a market share of 12.33%. And this ban isn't on the whole range of iPhones, but only on the latest 16 models. Thus, it wouldn't affect revenue and market share of the company in the country.

As per a report by Apple, iPhones are a big part of the used smartphone industry in Indonesia. Since buying a new iPhone is expensive for most citizens in the country, they prefer buying used iPhones due to their brand appeal and user-friendly experience.

This begs the question of whether the ban on iPhone 16 would be enough to force Apple to invest the additional $14 million. However, Apple hasn't yet responded to the incident yet.

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