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This week, the Indonesian authorities have imposed a prohibition on the sale and usage of the iPhone 16 in the nation, as well as other newly released Apple products, such as the Apple Watch Series 10. This drastic measure stems from Apple’s failure to fulfill certain investment obligations within the country (as reported by The Economic Times).
The ban pertains not only to the sale of iPhone 16 models but also affects those already in circulation, posing challenges for visitors. Gumiwang Kartasasmita, Indonesia’s Industry Minister, emphasized the following:
If you find an operational iPhone 16 in Indonesia, it is deemed illegal. We urge you to report such cases to us.
The rationale behind this prohibition is to compel Apple to honor its investment commitments in the country. The tech giant had proposed an investment of $109 million USD (around 1.71 trillion rupiah) aimed at enhancing Indonesia’s infrastructure and local sourcing. However, Apple has reportedly fallen short, contributing only about $95 million USD (1.48 trillion rupiah) to date.
This $14 million USD (approximately 230 billion rupiah) deficit has hindered the Indonesian Ministry of Industry from granting the necessary IMEI (International Mobile Equipment Identity) certifications, which are essential for legally selling the devices in the nation. Minister Kartasasmita further commented:
We, at the Ministry of Industry, cannot issue permits for the iPhone 16 because Apple has outstanding commitments to fulfill.
The push for investment from Apple is part of Indonesia’s requirement for foreign firms to achieve a 40% local content ratio to operate in the nation. Apple had also promised to establish research and development centers, known as Apple academies, within Indonesia.
As of now, it remains uncertain whether Apple has any strategies to address or lift this sales ban.
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