The iPhone 16 lineup is returning to Indonesia. According to reports, the iPhone maker is now set to resume sales of its latest flagship in Indonesia after reaching an agreement with the country’s government, ending a five-month-long ban. This comes after extensive negotiations between Apple and the Indonesian Ministry of Industry, with the tech giant agreeing to a $1 billion investment in the country to meet the regulations.
The Ministry of Industry is expected to formally sign a memorandum of understanding (MoU) with Apple within the coming days. Once the agreement is finalized, Apple will be issued the necessary certification to resume sales of its iPhone 16 models in Indonesia.
For those who missed it, Indonesia’s decision to block iPhone 16 sales was rooted in its domestic content regulations, which require all smartphones sold within the country to include at least 40% locally sourced components or demonstrate meaningful investment in local partnerships. Apple, which does not have a manufacturing facility in Indonesia, failed to meet these requirements when the iPhone 16 was launched in October 2024. As a result, the Ministry of Industry enforced a ban, preventing Apple from legally selling its latest iPhone models in the country.
For its part, Apple has historically complied with Indonesia’s regulatory framework through alternative investment initiatives, such as establishing developer academies and other training programs. However, the government deemed these contributions insufficient, particularly as Apple’s total investment in the country amounted to just $95 million—significantly less than what officials had expected from one of the world’s most valuable tech companies.
In response to the ban, Apple proposed a substantial $1 billion investment package, which was initially endorsed by Indonesian President Prabowo Subianto. However, sometime last month, the Ministry of Industry refused to lift the restrictions, arguing that Apple’s proposal did not go far enough to meet local content requirements. This went on to lead to a prolonged deadlock in negotiations, with Apple seeking a resolution that would allow it to access the Indonesian market once more.
Now, as part of the final agreement with the government, Apple will be committing to a series of investment initiatives that will allow it to regain access to the Indonesian market while remaining compliant with the country’s domestic content regulations. This includes the establishment of new manufacturing facilities, additional funding for research and development programs, and financial settlements related to past regulatory non-compliance. A new manufacturing plant will be set up on Batam Island, which will be operated by its supplier Luxshare Precision Industry Co, and focus on the production of AirTags (Indonesia is expected to account for approximately 20% of Apple’s global supply of the product).
In addition to the Batam facility, Apple will also establish another plant in Bandung, located southeast of Jakarta, which will be dedicated to producing accessories for Apple’s devices. In addition to this, the Cupertino-headquartered tech giant will pay a $10 million settlement to address its failure to meet Indonesia’s domestic content requirements between 2020 and 2023.
Content originally published on The Tech Media – Global technology news, latest gadget news and breaking tech news.
