The Indonesian government recently announced an order against Apple banning the sale and use of the iPhone 16 and other Apple products released this fall, including the Apple Watch Series 10.
Why ban iPhone 16?
According to a statement released by Indonesia's Ministry of Industry, Apple's local subsidiary PT Apple Indonesia failed to meet Indonesia's requirement of 40% localization of components in smartphones and tablets, known as product origin certification (TKDN). Tingkat Kemasukan Domestik Nasional, TKDN aims to encourage companies to manufacture and source locally in Indonesia to promote the development of domestic industries.
In addition, because Apple still has some commitments to fulfill, Indonesia has yet to issue the necessary International Mobile Equipment Identity Code (IMEI) certification for the iPhone 16, which is required to sell phones in the country. Indonesia's industry ministry said Apple had promised to invest 1.7 trillion rupiah ($109 million) in Indonesian infrastructure and local procurement, but the actual amount invested was less than the pledged total, only 1.48 trillion rupiah ($95 million).
Simply put, because Apple did not update its certification and fulfill its investment commitments in a timely manner, Indonesia took measures to "protect the local industry and market."
"If any iPhone 16 is used in Indonesia, then I can directly say that this device is illegal. If you find it, please report it to us," Industry Minister Agus Gumiwang Kartasasmita said in a statement, according to the Jakarta Globe. "Indonesia has not yet issued IMEI certification for the device," he said.
Febri Hendri Antoni Arif, a spokesman for Indonesia's Ministry of Industry, confirmed in a statement that an application for TKDN certification for the iPhone 16 was under review but was still subject to Apple fulfilling its investment commitments. He also said the department will continue efforts to control imports of mobile phone products to encourage investment and innovation in domestic electronics. The move is intended to bring opportunity to the Indonesian market, where the number of active mobile phones even exceeds the number of people (270 million), reaching 354 million.
Now, the Indonesian government requires Apple to timely update the TKDN certification and further investment in Indonesia, otherwise the iPhone 16 can not resume normal sales in the Indonesian market.
However, older Apple products are not affected by the ban. Passengers can also bring up to two iPhone 16s into the country, but only for personal use and cannot be sold in Indonesia.
The ban issued by the Indonesian government undoubtedly poses a challenge to Apple's strategy in the Southeast Asian market.
Apple said it is deeply committed to the Indonesian market and looks forward to bringing all its latest products, including the iPhone 16 series, to customers in Indonesia as soon as possible. Despite the ban, Apple seems optimistic about resolving the current issue and hopes to be able to meet the Indonesian government's demands as soon as possible in order to resume sales in the country.
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