Indonesia has dealt a major blow to Apple by banning the iPhone 16 series. The country’s Ministry of Industry has declared the device illegal within its borders due to the tech giant’s failure to fulfill its investment promises.
Apple had initially committed to investing IDR 1.71 trillion (USD 109 million) in Indonesia. However, the company has only invested IDR 1.48 trillion (USD 95 million) so far, falling short of its pledge by IDR 230 billion (USD 14.75 million).
This shortfall has prevented Apple from obtaining the necessary International Mobile Equipment Identity (IMEI) certification. Without this certification, the iPhone 16 and other recently launched Apple products, including the iPhone 16 Pro series and Apple Watch Series 10, are illegal in Indonesia.
Tourists and flight crews are exempt from the ban and allowed to bring up to two iPhone 16 Series devices into the country.
Indonesia’s government has strict regulations for foreign companies operating within its borders. These companies are required to meet a 40% local content requirement, as part of the Domestic Component Level (TKDN) certification process. For Apple, this means establishing research and development facilities, or Apple Academies, across the country.
It remains to be seen how Apple will respond to this ban and whether it can fulfill its investment commitments to regain access to the Indonesian market.
