Indonesia has imposed a ban on the sale and use of Apple’s latest iPhone 16 and Apple Watch Series 10, citing the tech giant’s unfulfilled investment promises. The Indonesian government highlighted Apple’s failure to meet its financial commitments as the main reason for the decision.

Apple initially committed to investing around IDR 1.71 trillion in local research and development infrastructure in Indonesia. However, the company only invested IDR 1.48 trillion, leaving a deficit of around $14.75 million.

As a result, the Indonesian Ministry of Industry refused IMEI (International Mobile Equipment Identity) certification, which is crucial for allowing the sale of devices in the country. Without this certification, the iPhone 16 and Apple Watch Series 10 cannot be legally sold or used in Indonesia.

Indonesian Industry Minister Agus Gumiwang Kartasasmita has issued a stern warning regarding the operation of iPhone 16 devices in the country. He urged the public to report any such devices, saying they would be considered illegal if discovered. The minister stressed the importance of respecting local laws and regulations.

The ban also highlights Indonesia’s strict local content requirements. Foreign companies are required to ensure that at least 40 percent local content in their products receives Domestic Component Level (TKDN) certification, necessary for sales in Indonesia. This can be achieved through local manufacturing, software development or the establishment of R&D facilities. Apple’s delay in investment hampered the certification process, leading to the current situation.

Despite the ban, tourists and airline crews are allowed to bring and use up to two iPhone 16 series devices for personal use during their stay in Indonesia. However, these devices cannot be sold locally and any attempt to do so would violate the ban.

Apple has yet to respond to the Indonesian government’s decision, and it remains unclear when or if the company will make the remaining investment to lift the ban. Until then, the ban is expected to remain in effect until Apple fully complies with its financial commitments.