What was the reason for the stop?
Industry Minister Agus Gumiwang Kartasasmita announced a ban on the sale and operation of the iPhone 16 series in Indonesia. He said that no one should buy iPhone from foreign countries. If iPhone 16 is used within the border of Indonesia then it will be considered illegal. Even if it comes under International Mobile Equipment Identity (IMEI) certification. According to the Indonesian government, Apple was making many shortcomings in terms of investment in the country, which is the main reason for the ban of iPhone in the country. Apple had promised to invest 1.71 trillion rupiah (about Rs 919 crore) in local operations, but it has invested only 1.48 trillion rupiah (about Rs 795 crore). This shortfall is 230 billion rupiah (about Rs 123.6 crore), which the tech giant still has to fulfill.
Why was the deal not done?
Minister Kartasasmita said that when Apple does not give any importance to investment in the country, then why should its products be sold here. If Apple does not fulfill the promises made regarding investment, the ban on iPhone 16 will continue. Earlier this year, Apple CEO Tim Cook was in Jakarta, where the two agreed on many things. Even after this, there were many conversations between these two. However, even after this, iPhone 16 Pro array and Apple Watch Series 10 were not distributed in Indonesia, due to which Indonesia suffered the most loss.
Indonesia's Ministry of Industry confirmed that the TKDN certification application for the iPhone 16 is currently under review. Even if the company is found right in this matter, the ban on iPhone will continue in the country. To remove this, Apple will have to fulfill the promises made regarding investment in the country.
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