According to the Times of India, "Indonesia has banned Apple's iPhone 16 from being sold in the country. Indonesia's Industry Minister Agus Gumiwang Kartasasmita declared today that any iPhone 16 operating in Indonesia is illegal, warning consumers against purchasing the device from aboard.

No International Equipment Identify (IMEI) certification has been issued for the device. The ban stems from Apple's unfulfilled investment commitments in Indonesia. Apple has reportedly invested USD95 million to date which is USD15 million short of their commitment to the country, the Minister explained.

The extension of the TKDN (Domestic Component Level) certification requires that companies to meet a 40% local content value requirement to sell products in Indonesia. The certification process is directly linked to Apple's commitment to establish research and development facilities, known as Apple Academies, in the the country.

The announcement comes despite Apple CEO Tim Cook's April visit to Jakarta, where he discussed potential manufacturing plans with President Joko Widodo. Cook had reportedly indicated that Apple would "look at" the possibility of establishing manufacturing facilities in Indonesia."

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With over 85% of Apple's commitment fulfilled, the lack of trust on the part of the Indonesian government for the remaining 15% is a disturbing development. Yet a new Bloomberg report adds that "Indonesia has a long track record of using trade restrictions to push foreign companies to produce more of their goods domestically, though to mixed success.

Rival phone makers like Samsung Electronics Co. and Xiaomi Corp. have set up factories in Indonesia to comply with the domestic content regulations introduced in 2017. Other ways to boost local content include sourcing materials or hiring workers in the country.

The government tightened import rules on a wide swathe of products this year, leading to a shortage of items such as laptops and car tires, and causing a pile-up in its ports."