Home Indonesia blocks Apple iPhone 16 sales over investment shortfall

Indonesia blocks Apple iPhone 16 sales over investment shortfall

Apple will be blocked from selling its iPhone 16 smartphones in Indonesia as the devices fail to comply with the country’s regulations on the use of locally sourced components, the industry ministry announced.

Indonesia’s government also banned the sale and use of other Apple products released this fall, including the Apple Watch Series 10. The ban applies to both the sale and use of iPhone 16 models, including those already purchased, posing challenges for tourists.

The country’s industry ministry estimates that between August and October 2024, approximately 9,000 units of the iPhone 16 series entered Indonesia through passengers.

Why is Indonesia banning sales of Apple products?

Indonesia requires that certain smartphones sold domestically must include at least 40% locally manufactured components.

The tech giant reportedly pledged $109 million (1.71 trillion rupiah) to invest in Indonesia’s infrastructure and local sourcing but has fallen short, contributing only about $95 million (1.48 trillion rupiah).

This $14 million (230 billion rupiah) shortfall is said to have prevented the Ministry of Industry from issuing the necessary IMEI (International Mobile Equipment Identity) certifications, which are required for the devices to be sold in the country.

Industry Minister Gumiwang Kartasasmita stated: “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.”

Meanwhile, ministry spokesperson Febri Hendri Antoni Arief said in a statement issued on Friday (Oct. 25): “Imported iPhone 16 hardwares cannot be marketed in the country, because Apple Indonesia has not fulfilled its investment commitment to earn a local content certification.”

He clarified that phones can still be imported for personal use, provided the required taxes are paid.

The company’s iPhone 16 phones were released in September, and has faced several issues. ReadWrite reported at the time that Apple had to issue a new update for its iPhone 16 range only days after its release after some users complained about display issues.

ReadWrite has reached out to Apple for comment.

Featured image: Apple / Canva

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The ReadWrite Editorial policy involves closely monitoring the gambling and blockchain industries for major developments, new product and brand launches, game releases and other newsworthy events. Editors assign relevant stories to in-house staff writers with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Suswati Basu
Tech journalist

Suswati Basu is a multilingual, award-winning editor and the founder of the intersectional literature channel, How To Be Books. She was shortlisted for the Guardian Mary Stott Prize and longlisted for the Guardian International Development Journalism Award. With 18 years of experience in the media industry, Suswati has held significant roles such as head of audience and deputy editor for NationalWorld news, digital editor for Channel 4 News and ITV News. She has also contributed to the Guardian and received training at the BBC As an audience, trends, and SEO specialist, she has participated in panel events alongside Google. Her…

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