iPhone 16 & iPhone 16 Plus Remain Prohibited in Indonesia
Reports from Indonesian officials indicate that a resolution between the government and Apple is imminent, potentially lifting the ban on iPhone 16 sales within the coming week.
The prohibition was enacted in October 2024, shortly after the release of the iPhone 16 series, stemming from concerns about Apple’s financial involvement in Indonesia.
Insiders with knowledge of the situation told Bloomberg that an agreement is expected to be finalized soon between Apple’s representatives and Indonesia’s Ministry of Industry. This memorandum could allow for Apple to receive a license for selling the iPhone 16 without delay.
While specific details of this agreement are still unclear, sources suggested that Apple has no immediate intentions to commence local manufacturing within Indonesia. This stance contrasts with prior expectations by both parties regarding local production efforts.
It appears that Apple has resisted some of Indonesia’s mounting demands following a pledge made by CEO Tim Cook to consider establishing local manufacturing capabilities. The ban on iPhones was implemented after Apple failed to meet earlier commitments made to Indonesian authorities.
Apple had been credited with an exemption from stringent import restrictions by vowing to invest approximately $110 million into educational and technological initiatives—however, it fell short by roughly $15 million and did not satisfy local content regulations either.
Reports indicate that Indonesia mandates smartphone manufacturers use between 35% and 40% locally sourced components, which presents significant challenges for many global tech companies—Huawei being one exception actively working towards compliance.
Initially, Apple’s offer consisted of an insufficient increase of just $10 million above previous commitments. After negotiations deadlocked over this amount, it upped its proposal first to $100 million and then finally offered up $1 billion—a sum ultimately accepted even as Indonesian authorities claimed it did not meet their expectations fully.
The reasoning behind asserting this sum was inadequate lies in its designation towards producing AirTags instead of essential components for the production of iPhones within the country itself.
As such, Indonesian regulators seem steadfast in enforcing their content requirements while pressing Apple for increased investment commitments necessary for manufacturing operations on home soil.
According to recent developments, plans are set forth for Apple’s planned billion-dollar facility dedicated primarily toward AirTags production alongside enhancements geared toward research and development centers tailored specifically towards growing local talent while significantly amplifying its training initiatives—not merely extending pre-existing developer programs elsewhere in Asia.
