Indonesia has officially banned the sale of Apple’s iPhone 16, declaring its use “illegal” in the country.

This important decision is due to Apple’s inability to meet the local investment requirements necessary to obtain the certifications required to sell the device, as explained below.

Shortfall in investment commitments

Indonesia’s Ministry of Industry pointed out that Apple has only invested about 1.48 trillion rupiah (about $94 million) in local infrastructure and procurement.

This figure is far from the 1.71 trillion rupiah (about $109 million) promised.

This deficit has a direct impact on Apple’s ability to obtain TKDN (Domestic Component Level) certification, which requires smartphones sold in Indonesia to contain at least 40% local content.

Lack of certification

Without reaching the investment threshold, Apple did not receive the necessary certifications to market its latest iPhone model in Indonesia.

As a result, the iPhone 16 is missing from major e-commerce platforms like Tokopedia, Bligli, and Lazada. The absence of the device on Apple’s official Indonesian website further highlights this restriction.

Although no official government order has been issued, the ministry’s statements indicate a clear stance against unauthorized sales of the iPhone 16.

Warning against illegal sales

Minister Agus Gumiwang Kartasasmita has issued strong warnings to consumers, stating that any iPhone 16 devices sold in Indonesia without the proper permits should be considered illegal.

The government encourages the public to report any illegal sales.

The warning underscores Indonesia’s commitment to enforcing its local regulations and ensuring respect for foreign companies operating within its borders.

Apple CEO’s visit and future outlook

The issue gained prominence after Apple CEO Tim Cook visited Jakarta in April 2024, where he met with President Joko Widodo to discuss expanding Apple’s presence in Indonesia.

This includes potential investments in local manufacturing facilities and the creation of developer academies.

Although these discussions were aimed at strengthening Apple’s operations in the country, no immediate solution was found regarding the certification issue, leaving the future of iPhone sales in Indonesia uncertain.

Consequences for consumers and market dynamics

The ban leaves Indonesian consumers waiting for access to the iPhone 16. Currently, only around 9,000 units of the device are believed to be in the country, imported primarily for personal use and not available for resale.

This limitation means that many potential buyers will have to forgo purchasing the latest model until Apple meets its investment commitments.

The situation not only affects Apple, but also illustrates the broader challenges foreign technology companies face in adapting to local regulations in emerging markets like Indonesia.

Context of the Indonesian regulatory environment

Indonesia’s strict regulations on foreign investment in the technology sector are designed to promote domestic manufacturing and ensure international companies contribute to the local economy.

Since 2017, the country has imposed rules requiring a significant percentage of local content in electronic devices.

This has led several global brands, including Xiaomi and Samsung, to establish local manufacturing facilities to comply with these requirements.

Although Apple has been active in the region, opening developer academies since 2018, it has yet to establish manufacturing operations in Indonesia.

This stands in stark contrast to competitors who have invested heavily in local infrastructure, allowing them to meet domestic content requirements and operate smoothly in the market.

With a population of more than 270 million and a rapidly growing base of tech-savvy consumers, Indonesia represents a lucrative market for smartphone makers.

However, Apple’s current predicament highlights the complexities and challenges of aligning with local investment regulations.

As the country’s smartphone user base continues to grow (currently estimated at over 350 million active mobile phones), the pressure on Apple to deliver on its commitments and gain a foothold in this key market is growing. .

Previously, Apple released iOS 18.1 on October 28, introducing its AI platform, Apple Intelligence, to the iPhone 16 and iPhone 15 Pro.

This update also expands Apple Intelligence capabilities to iPad and Mac, marking a significant step in improving Apple’s AI presence and boosting interest in the iPhone 16 series recently launched.

In summary, the iPhone 16 ban not only reflects Apple’s investment challenges, but also Indonesia’s strong stance in promoting local industry.

The situation remains fluid, with consumers and Apple both awaiting developments that could determine the future of the iPhone in this Southeast Asian powerhouse.