Indonesia Upholds Ban on iPhone 16 Sales Amid Investment Dispute
Background
Indonesia prohibited the marketing and sale of the iPhone 16 model in October due to Apple’s failure to meet local investment regulations requiring that 40% of phones be made from local parts. The move was part of the country’s efforts to boost investments from giant tech companies.
Recent Developments
On Wednesday, the Indonesian government upheld the ban, citing Apple’s failure to meet domestic market requirements. Investment minister Rosan Roeslani revealed that Apple had offered to invest US$1 billion to build an AirTag factory on Batam island, which was expected to supply 65% of the global supply. However, the deal had not been signed, and the government had given Apple a counterproposal, which the company had not responded to.
Minister’s Remarks
Industry minister Agus Gumiwang Kartasasmita explained that AirTag is an accessory, not a component or part of gadgets, and therefore does not meet the 40% local parts requirement. He stated that the ministry does not have any reason to issue the domestic component level certificate for Apple products, especially the iPhone 16.
Previous Attempts
Apple had previously offered to increase its investments in Indonesia by US$100 million to lift the iPhone 16 sales ban, but the government refused the proposal in November.
Consequences
Despite the ban, the government allows iPhone 16s to be carried into Indonesia if they are not being traded commercially. The government estimates about 9,000 units of the new model have entered the country that way. Indonesia also banned the sale of Google Pixel phones for failing to meet the 40% parts requirement. About 22,000 Google Pixel phones entered the country last year despite the ban.
Conclusion
The Indonesian government’s decision to uphold the ban on iPhone 16 sales highlights the country’s commitment to promoting local investments and supporting domestic industries. While Apple’s offer to invest US$1 billion in an AirTag factory is significant, it does not meet the government’s requirement for local parts. The situation remains a stalemate, and it is unclear when or if Apple will meet the government’s demands.
Frequently Asked Questions
- What was the reason for the iPhone 16 ban?
The iPhone 16 was banned due to Apple’s failure to meet local investment regulations requiring that 40% of phones be made from local parts. - What was Apple’s offer to lift the ban?
Apple offered to increase its investments in Indonesia by US$100 million, but the government refused the proposal. - How many iPhone 16s have entered Indonesia despite the ban?
The government estimates about 9,000 units of the new model have entered the country that way. - What other companies have been affected by the ban?
Google Pixel phones were also banned for failing to meet the 40% parts requirement.