Indonesia has issued an official ban on Apple's latest iPhone 16, prohibiting its sale and use within the country due to unmet investment commitments by the tech giant. Industry Minister Agus Gumiwang Kartasasmita announced on Tuesday that any iPhone 16 operating in Indonesia is now considered "illegal." He advised consumers against purchasing the device from abroad, adding, "If there is an iPhone 16 that can operate in Indonesia, that means that I can say, the device is illegal. Do report it to us."

Investment Shortfall Delays Certification
The decision to ban the iPhone 16 stems from Apple falling short on its promised investment in Indonesia. The company initially pledged 1.71 trillion rupiah (about $109 million) to support local content and infrastructure, but it has so far invested only 1.48 trillion rupiah (approximately $95 million). The shortfall of around 230 billion rupiah ($14.75 million) has prevented the Ministry from granting the required International Mobile Equipment Identity (IMEI) certification, which is essential for a device's legal status in Indonesia. Kartasasmita explained, “We, the Ministry of Industry, are yet to be able to issue permits for the iPhone 16 because there are still commitments that Apple must realise.”

Alongside the iPhone 16, the ban applies to other newly launched Apple products, including the iPhone 16 Pro series and the Apple Watch Series 10, following their global debut on September 20.

Local Content Requirements and Apple’s Pending Commitments
Indonesia mandates a 40% local content requirement, known as the Domestic Component Level (TKDN) certification, for foreign tech products to operate within the country. This certification is tied to Apple’s commitment to establish research and development centers, commonly referred to as "Apple Academies," across Indonesia. Earlier in the month, Kartasasmita noted that the iPhone 16’s certification renewal was pending due to incomplete investment commitments. He said, “Apple’s iPhone 16 cannot be sold in Indonesia yet because the extension of the TKDN certification is still pending, awaiting further investment realisation from Apple.”

Febri Hendri Antoni Arif, a spokesperson for the Ministry, confirmed that Apple has applied for the TKDN certification for the iPhone 16, but the application is currently under review and will proceed only when Apple fulfills its investment obligations.

Talks with Apple CEO Tim Cook
In April, Apple CEO Tim Cook visited Jakarta and met with President Joko Widodo to discuss potential expansion plans in Indonesia. During the visit, Cook hinted that Apple would consider setting up local manufacturing facilities to support its Indonesian operations. Despite these discussions, no new agreements have materialized, and regulatory authorities are still awaiting Apple’s full compliance with its commitments.

Impact on Apple in Indonesia
With the restriction in place, Apple faces uncertainties on how it will address Indonesia’s requirements. The ban could also affect tourists and consumers planning to buy or bring the iPhone 16 into Indonesia. This policy underscores Indonesia’s commitment to ensuring that international companies contribute significantly to the country’s economy and local industry.