Apple has reached an agreement with the Indonesian government, allowing it to sell the iPhone 16 series in the country. The deal is set to be formalized with the signing of a memorandum later this week.
Indonesia initially banned the sale of the iPhone 16 in October due to Apple’s non-compliance with local investment regulations. Under these rules, 40% of a phone’s components must be produced domestically, as the country seeks to attract investment from major tech companies. Negotiations on this matter were swiftly initiated, involving Indonesia’s Minister of Investment, Minister of Industry, and Apple representatives.
Apple has announced plans to invest $1 billion USD in the construction of a manufacturing facility that will produce components for its products. However, this proposal did not fully satisfy Indonesian authorities, as Apple intended to manufacture accessories, such as AirTags and peripheral devices, rather than iPhone components.
Beyond this investment, Apple has also committed to training local talent in research and development, introducing a new educational program separate from its existing academy in Indonesia.
Despite the sales ban, the government allowed the import of iPhone 16 devices for non-commercial use. By the end of 2024, an estimated 9,000 units of the new smartphone had entered the country through these channels. Indonesia also banned Google Pixel phones due to similar non-compliance with local component requirements.
Last year, Apple CEO Tim Cook visited Indonesia as part of the company’s strategy to diversify its supply chain beyond China. During his visit, he met with then-President Joko “Jokowi” Widodo and his successor Prabowo Subianto, announcing the expansion of Apple’s developer academies in the country.
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