Indonesia's iPhone 16 sales illegal due to lack of Apple investment in the country, officials say
It has been revealed that the Indonesian government issued a statement on October 25, 2024, stating that it has legally banned Apple from selling the iPhone 16. The reason given by the authorities is that 'Apple has not fulfilled its previously committed investment plans.'
Kemenperin: iPhone 16 Belum Bersertifikat TKDN, Tidak Boleh Diperjualbelikan di Indonesia
Indonesia Blocks Sale of Apple (APPL) iPhone 16 in Bid For Investment - Bloomberg
Apple iPhone 16: Why is it off-limits in Indonesia? Here's what you need to know about the new ban - The Economic Times
https://economictimes.indiatimes.com/industry/cons-products/electronics/apple-iphone-16-why-is-it-off-limits-in-indonesia-heres-what-you-need-to-know-about-the-new-ban/articleshow/114609198.cms?from=mdr
In a statement on October 25, Indonesia's Ministry of Industry said that distribution of the iPhone 16 is illegal because Apple has not received approval to sell the device.
'If you have an iPhone 16 that works in Indonesia, please report it to us because this means we need to consider that the device is illegal,' Industry Minister Agus Gumiwang Kartasasmita said.
The sales ban applies to the iPhone 16, which was released in September 2024, but older models can still be purchased legally.
Apple is unable to sell the iPhone 16 in Indonesia because it did not meet the requirement that the 'local content rate (TKDN)' of raw materials and employment in the production of smartphones sold in Indonesia must be at least 40%.
In exchange for producing the iPhone 16 locally and meeting TKDN standards, Apple had promised to invest 1.71 trillion rupiah (about 16.5 billion yen) to set up a research and development facility called the 'Apple Academy' in Indonesia, but according to authorities, the investment so far is only 1.5 trillion rupiah (about 14.5 billion yen).
Due to the lack of investment, Apple was unable to obtain the TKDN certificate and, therefore, was not issued the International Mobile Equipment Identity (IMEI) number required to sell the iPhone 16.
Indonesia's Ministry of Industry spokesman Febri Hendri Antoni Arif confirmed that Apple has applied for TKDN certification for the iPhone 16, but said the application is under review and will only proceed if the company's investment obligations are met.
While Apple's products are not among the top six best-selling smartphones in Indonesia, a stumble in a market expected to see a growing, tech-savvy young population and economic growth would be a costly one for Apple.
According to government statistics, Indonesia's economy is worth $1 trillion and there are already 350 million mobile phones in use in the country, far more than its population of 270 million.
Bloomberg reached out to Apple but did not receive a response.
What is prohibited is the sale of the iPhone 16, but bringing it into the country is not illegal. According to authorities, about 9,000 iPhone 16s were brought into Indonesia on passenger planes and by mail between August and October 2024. However, Bloomberg points out that it will be tough for Indonesian users who want to buy the next iPhone because they will have to pay a large amount of tax to get it through this route.
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Indonesia bans sales of not only iPhone 16 but also Google Pixel - GIGAZINE
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