Indonesia Bans iPhone 16 Sales After Apple's $14B Investment Promise Falls Short

In a dramatic escalation of tensions between Apple and Indonesian authorities, the government has implemented a comprehensive ban on iPhone 16 models and other recent Apple products, including the Apple Watch Series 10. The ban comes in response to Apple’s failure to fulfil its investment commitments in Southeast Asia’s largest economy.

The sweeping prohibition, announced earlier this week, extends beyond new sales to include previously purchased devices, creating potential complications for tourists and existing users. The move represents one of the most aggressive regulatory actions taken against the tech giant in recent years.

At the heart of the dispute is Apple’s unfulfilled pledge to invest $109 million (1.71 trillion rupiah) in Indonesian infrastructure and local sourcing. The company has only delivered approximately $95 million (1.48 trillion rupiah), falling short by $14 million (230 billion rupiah).

Industry Minister Gumiwang Kartasasmita took a firm stance on enforcement, 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.”

The investment shortfall has led to a technical impasse, with Indonesia’s Ministry of Industry withholding crucial IMEI (International Mobile Equipment Identity) certifications required for legal device operation within the country. Without these certifications, new Apple devices cannot be legally sold or operated in Indonesia.

“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,”
Minister Kartasasmita explained.

The conflict stems from Indonesia’s strict foreign investment regulations, which require international companies to maintain a 40% local content requirement to operate within the country. Apple had previously agreed to these terms, promising to establish research and development facilities, known as Apple academies, throughout Indonesia.

The ban’s implementation poses significant challenges for both Apple and Indonesian consumers, particularly given the country’s growing tech market. As of this reporting, Apple has not publicly announced any plans to address the sales ban or fulfill its remaining investment commitments.

The situation highlights the increasing complexity of global tech companies navigating local regulatory requirements in emerging markets, where governments are increasingly demanding substantial local investment in exchange for market access.

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Eric Sandler

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Eric Sandler is a veteran US tech writer with over 25 years of experience covering the latest advancements in the world of technology. From groundbreaking innovations to in-depth reviews, Eric has built a reputation for delivering insightful, reliable content. His work spans across a variety of tech topics, including smartphones, gadgets, AI, and more, making him a trusted voice in the industry.