iPhone 16 faces sales block in Indonesia over investment issues
The iPhone 16 faces a ban on sales in Indonesia, with ministers insisting Apple renews a content requirements certification and makes further investments in the country before the newest model can be allowed to be purchased locally.
Jakarta [Tom Fisk/Pexels]
Like any other multinational, Apple follows local laws so it can conduct business in different territories. In Indonesia, it appears that certification and investment commitments may end up blocking sales of the iPhone 16 in the region.
Industry minister Agus Gumiwang Kartasamita said on Tuesday that the iPhone 16 won't be sold in the country, unless certain conditions are met. These conditions, reports Channel News Asia, include maintaining investment commitments and a certification renewal.
"The Extension of the TKDN certification is still pending, awaiting further investment realization from Apple," said Agus at an October 8 event.
Apple had previously received TKDN certification, which is to do with the use of domestic components in goods and services. The Domestic Component Level required to get certification is at least 40%.
However, Apple had let the certificate expire, and that it needs to be renewed. It can do so via local manufacturing schemes, the development of applications, and an innovation development scheme.
Alongside the certification, Agus added that Apple hadn't reached the level of investment commitments it had promised. Apple had invested 1.48 trillion rupiah ($94.53 million), below the 1.71 trillion rupiah ($109.6 million) it had previously committed to.
Agus said that Apple had gone down the route of the innovation development scheme, which it has largely managed by creating Apple Academies in the region. In April, CEO Tim Cook said a fourth academy will be opened in the future in Bali.
The sales ban could force residents to buy the model overseas, which will increase the cost of the device. It is estimated that there could be import fees of around $155 to bring an iPhone 16 valued at S$1,299 ($994) to Indonesia from Singapore.
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