Claiming an unfulfilled investment from the Cupertino giant, Apple, Indonesia bans the sales of iPhone and Apple Watch Series 10, declaring the sales of these devices are considered illegal.
Apple, the world’s most valued company after Nvidia has been contributing to the gadget industry since 1976 with the first Apple computer. The company launches a new series of iPhones every year, and in 2024 launched the new iPhone 16 model. With a presale of 9.8 million in the first week itself the company is expecting exponential growth. However, the ban on sales of iPhone 16 and Apple Watch Series 10 from the Indonesian market has become a serious concern to the company.
The ban prevents sellers from selling the products in the Indonesian market and also prevents an import from abroad. According to reports from the Indonesian Industry Ministry, the imposed ban is due to the lack of fulfilling the required investment by the company. Initially, Apple had claimed to invest approximately IDR 1.71 trillion in the local infrastructure and development sector within the country but only invested IDR 1.48 trillion.
To sell a device in a country, a company has to get International Mobile Equipment Identity (IMEI) certification. The Indonesian Industry Ministry has withheld Apple’s IMEI certification, preventing the sales of Apple 16 and Apple Watch Series 10 within the country. Agus Gumiwang Kartasasmita, the Indonesian Industry Minister also warned people regarding the after-effects of buying the phone internationally, emphasizing the importance of abiding by the laws of the country.
Indonesia follows strict local content requirements. To conduct sales in the country, a seller has to receive Domestic Component Level certification, TKDN, and in order to receive the certification foreign companies have to ensure at least 40% local content in their product. Apple’s failure to invest in local content resulted in the withheld of certification and later the ban.
However, travelers are allowed to bring up to two iPhones to the country while reselling is prohibited. The devices from abroad are not banned as long as the IMEI numbers are registered at the airport, said a spokesperson from the Indonesian Industry Ministry.
This ban signifies the Indonesian government’s strategy to promote domestic production within the country, and this is not the first time the country has decided to go for a ban. Earlier, Apple received an import ban on around 4000 goods. Indonesia has also banned the import of mineral ores which resulted in the boosting of the country’s own battery sector.
Indonesia has a large tech-savvy population with 350m million active phones. The imposed restriction is a great bane for the company since it is the biggest economy in Southeast Asia. This also leads to the increasing popularity of smartphones including Xiaomi, Oppo, Vivo, and Samsung which are already dominating the Indonesian market.
Recently Tim Cook, Apple CEO visited Jakarta, the capital city of Indonesia, to study the potential for expanding the company’s investment in the country. And announced the expansion of Apple’s developer academies within the country. However, no updates from Apple came after the ban announcement.
