This week the Indonesian government banned the sale and use of the models iPhone 16 From Apple. The industry ministry said this was in response to Apple’s failure to meet promised investment targets.

Apple has pledged to invest $109 million in infrastructure and local resources in Indonesia. It has invested about $95 million so far, leaving a deficit of $14 million, according to government figures. For this reason, the ministry did not give the necessary permissions for the legal sale of new iPhone models in the country.

The investment commitments were part of Indonesia’s local content rules, which require foreign tech companies to source 40% of components locally. Apple has committed to creating research centers and manufacturing units, or academies, as the company calls them. However, according to reports, not much was achieved.

The ban applies to all iPhone 16s, whether newly purchased or already owned by Indonesian residents. Tourists visiting the country are not allowed to use these devices on local networks during their visit. If used, the phones will be confiscated or reported to higher authorities.

Industry Minister Gumiwang Kartasmita said, “As the Ministry of Industry, we cannot yet give permission for the iPhone 16 because Apple has obligations to fulfill.” “If there is an iPhone 16 that can work in Indonesia, I can say that this device is illegal. Let us know about this.”

Indonesia is not an important market for Apple, being outside the top five smartphone brands. However, it is not yet known whether Apple plans to close the gap or challenge Indonesia’s figures and enforcement measures. How Apple handles the investment issue could impact its long-term strategy to increase smartphone sales in Southeast Asia.