Do you remember when just a few months ago the sale of the iPhone 12 was prevented in France because its radiation levels were not within what was allowed by the law of the neighboring country? Well now it’s back to prohibit the sale of another model, much newer, in Indonesiaalthough by radically different models.
The government of Indonesia has immediately banned the sale and the use of series devices iPhone 16 and Apple Watch 10 in the country, but not because they are dangerous or because they do not work or because they pose a risk to the country’s market. No, more diplomatic concepts come into play here, as the ban is a direct result of Apple’s unfulfilled investment commitments in the country, as Cupertino had previously committed to investing more than $109 million in local I +D.
Indonesian law has a few points that indicate that foreign companies must provide 40% local content to operate in the country as part of the national component level certification (TKDN). The local government offers three options to companies: manufacture products locally, develop software locally or establish R&D centers. And this is what Apple seems to have partly failed to deliver.
If there is an iPhone 16 that can work in Indonesia, that means I can say that the device is illegal. Let us know,”
Agus Gumiwang Kartasasmita, Minister of Industry of Indonesia.
Apple has to invest more
According to the latest figures reported by different media in the region, it is true that the American company has made good investments in the country, but the established commitment has not been reached long ago. Specifically, Apple has invested close to 95 million of dollars so far, forcing the Indonesian Ministry of Industry to block the issuance of the International Mobile Equipment Identity (IMEI) certification for the iPhone 16 series phones and the Apple Watch Series 10.
This means that phones can be used within their borders, meaning tourists and airline crew members can bring and use up to two iPhone 16 series devices in Indonesia, but they can’t sell those devices locally because that would violate the restrictions. They cannot be sold in establishments or online in the region and, of course, they cannot be resold legally in the area.
For now, Apple has not commented on the matter and it remains to be seen if it is worth investing those almost 15 million dollars that are missing to fulfill the agreement, or the sales expected in the country are not high enough to dedicate that economic effort (insignificant, on the other hand) in the Southeast Asian country.
It is to be imagined that those from Cupertino will end up investing the amount that is missing to maintain good relations with the country, more than for the sales they expect to have of their devices in the Indonesian region.
