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Published 15:42 IST, October 25th 2024

Indonesia Calls iPhone 16 'Illegal', Bans Its Sale. Here's Why

Apple's failure to fulfil investment pledges and regulatory criteria, such as IMEI and TKDN certifications, has resulted in the iPhone 16 ban in Indonesia

Reported by: Digital Desk
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Apple's Office | Image: PTI
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Indonesia: Indonesia has banned the sale and operation of Apple 's iPhone 16, declaring it illegal due to non-compliance with local regulations. Industry Minister Agus Gumiwang Kartasasmita urged consumers to avoid purchasing the device from abroad, warning that it cannot be used legally in the country without the required International Mobile Equipment Identity (IMEI) certification, essential for connectivity with local networks.

Ban on iPhone 16, Why?

The ban is primarily the result of Apple 's failure to disclose its investments to the Indonesian authorities. Although Apple promised to invest 1.71 trillion rupiah (about 919 crore) in local operations, the company has only made 1.48 trillion rupiah (around 795 crore) in local operations. Due to this shortfall, the tech firm still owes 230 billion rupiah, or roughly 123.6 crore. The iPhone 16 would not receive operational permission until these investments are honoured, Minister Kartasasmita clarified.

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Additionally, the iPhone 16's TKDN (Domestic Component Level) certification sets a minimum 40% local content standard, requiring a significant portion of the phone's components to come from domestic vendors. This is a requirement for selling electronics in Indonesia, and it explains why Apple plans to establish two research and development facilities that it calls Apple Academies. This would support local technology and skill.

Even after a number of talks between Apple and the Indonesian government, including one that took place during Tim Cook's visit to Jakarta earlier this year, the iPhone 16 and other new goods, including as the Apple Watch Series 10 and iPhone 16 Pro array, are still not available in Indonesia. "The application for TKDN certification for the iPhone 16 is currently under review," a Ministry of Industry official stated, adding that it won't be accepted until Apple fulfils its investment obligations.

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Updated 16:07 IST, October 25th 2024