Indonesia Bans iPhone 16 and Apple Watch 10 Series

Indonesia, the fourth most populous country in the world, has banned the sale of Apple’s latest mobile phone model iPhone 16 and Apple watch 10 series in the country as the Cupertino-based company has failed to fulfil the Domestic Component Level Certificate (TKDN) requirements.

Apple has committed to $109 million in the local research & development (R&D) facilities in Indonesia but invested around $95 million through its Indonesian arm, PT Apple Indonesia, so far. The iPhone 16 model was first released in September this year.

Due to this, the Indonesian Ministry of Industry to block the issuing of International Mobile Equipment Identity (IMEI) certification for the two devices. However, the Ministry did not ban the sale of Apple’s older products in the country.

The decision is a setback to Apple as Indonesia, according to government data, has a population of 270 million and 350 million active mobile collections, is one of the major markets in Southeast Asia with immense potential for the company.

According to government sources, around 9,000 iPhone 16 units that entered Indonesia between August and October 2024 were carried by passengers for personal use, with the appropriate taxes paid. Although the phones enter legally, trading these units in the country remains illegal.

Indonesian law mandates that foreign companies need to provide 40% local content to operate in the country as part of the TKDN certification. The local government has three options for companies – manufacture products locally, develop software locally or set up R&D centres.

Indonesia’s Minister of Industry Agus Gumiwang Kartasasmita said that the US company must fulfil its remaining investment commitment to obtain the license to sell iPhone 16 in Indonesia.

“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,” the Minister added.

Clarification

However, the state-owned news agency Antara clarified that tourists and airline crew members are allowed to bring and use up to two iPhone 16 series devices in the country but cannot sell those devices locally as that would violate the restrictions.

Meanwhile, iPhone 16 phones purchased by passengers and crew or sent by post and not sold are allowed to enter Indonesia, the ministry’s spokesperson, Febri Hendri Antoni Arief, said.

“The iPhone 16 series that enter Indonesia through passengers’ luggage should not be traded and is limited to personal use,” he remarked.

He said that the iPhone 16 falls in the category of postal and telecommunications goods allowed to enter, with a note that a maximum of two units per passenger is permitted.

Government Regulation No.46 of 2021 also stipulates that luggage and goods sent through posts are for personal use and should not be traded or for commercial purposes.