Indonesia is close to reversing its ban on the iPhone 16 after reaching an agreement with Apple, with a formal deal expected to be signed this week, according to Bloomberg News.
The ban, which was imposed in October 2024, came after Apple failed to comply with a regulation requiring at least 35% of locally sourced components in smartphones sold within the country.Â
In response, Apple has outlined a $1 billion investment plan for a manufacturing facility that will produce components for smartphones and other devices.
This move follows Indonesia’s earlier rejection of a $100 million investment proposal from Apple, which officials deemed insufficient. The country’s Industry Minister, Agus Gumiwang Kartasasmita, noted that Apple’s offer fell short when compared to the company’s larger investments in neighbouring Vietnam and Thailand.
He emphasised that Indonesia expects fair treatment in negotiations and is pushing for greater commitments to local manufacturing.
Jakarta has been strict about enforcing its localisation policies, which apply not only to Apple but also to Alphabet’s Google Pixel phones, which remain banned under similar regulations.
Other smartphone brands, including Samsung and Xiaomi, have met the requirements by setting up manufacturing operations within Indonesia.
In addition to this investment, Apple will also introduce training programmes to develop local talent in research and development.
These initiatives will be separate from the existing Apple Developer Academies, which already operate in cities such as Jakarta, Surabaya, Batam, and the newly announced Bali location.
Even with Apple’s lack of a manufacturing presence, Indonesia is still a key market with a population of over 270 million and growing smartphone demand.
Kartasasmita stressed that while the government is keen on Apple’s continued business in the country, the terms must align with Indonesia’s industrial growth ambitions.
For now, Apple has no immediate plans to manufacture iPhones in Indonesia. Per Reuters, neither the tech giant nor the Indonesian Ministry for Industry, responsible for enforcing the ban, have responded to requests for comment.
