Indonesia has officially banned the sale and use of Apple’s iPhone 16 and other recent releases, including the Apple Watch Series 10, after the tech giant failed to meet its commitments previously agreed investment plans in the country, according to reports from The Economic Times and 9to5Mac.

This restriction, announced earlier this week, not only affects future sales, but also extends to units already in use, posing potential challenges for locals and tourists alike.

How did this ban come about?

The ban stems from Apple’s shortfall on a promised investment of $109 million (Rs 1.71 trillion) in Indonesia, explains a report by The Economic Times. As part of the country’s requirement that foreign companies meet a 40% local content quota, Apple has committed to creating research and development facilities known as “Apple Academies.” However, the Ministry of Industry said Apple has only invested $95 million (Rs 1.48 trillion) so far, which is $14 million less than its commitment, according to the report. the Apple-centric news platform 9to5Mac.

In response to the lack of investment, Indonesia’s Ministry of Industry has denied IMEI (International Mobile Equipment Identity) certifications necessary for devices to operate legally in the country. Without certification, iPhone 16 models are considered unauthorized and Industry Minister Gumiwang Kartasasmita has asked the public to report any devices found operating in the country, the 9to5Mac report further states.

Although Apple has yet to publicly address the ban, its resolution is crucial as Indonesia represents a valuable consumer market in Southeast Asia. The technology community is closely watching Apple’s response, given the challenges of balancing regulatory compliance and local market access.