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iPhone 16 faces Indonesia sales ban as ministers press Apple to resume content requirements certification and make more investment in country before allowed buy the latest model locally.
Like any other multinational corporation, Apple complies with local laws to be able to do business in different territories. In Indonesia, it appears that certification and investment commitments may ultimately block sales of the iPhone 16 in the region.
Industry Minister Agus Gumiwang Kartasamita said on Tuesday that the iPhone 16 will not be sold in the country unless certain conditions are met. Those conditions, Channel News Asia reports, include maintaining investment commitments and renewing the certification.
“The renewal of the TKDN certification is still under consideration, pending further implementation of the investment from Apple,” Agus said at an event on October 8.
Apple previously received the TKDN certification, which is related to the use of domestic components in goods and services. The level of domestic components required to receive the certification is at least 40%.
However, Apple has allowed the certification to expire and needs to be renewed. This could be done through local manufacturing schemes, app development and an innovation development scheme.
In addition to certification, Agus added that Apple had not met its promised level of investment commitment. Apple had invested Rp 1.48 trillion (US$94.53 million), down from the previously promised Rp 1.71 trillion (US$109.6 million).
Agus said Apple had followed the path of the innovation development scheme, which it had largely managed, by setting up Apple academies in the region. In April, CEO Tim Cook said a fourth academy would open in Bali in the future.
The sales ban could force residents to buy the model overseas, which would increase the cost of the device. It is estimated that import duties could be around US$155 for importing the S$1,299 (US$994) iPhone 16 into Indonesia from Singapore.
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