The Indonesian government has reached a deal with Apple, leading to the lifting of a sales ban on the iPhone 16 model, sources close to the matter confirmed to AFP today. The agreement comes after months of intense negotiations between the tech giant and Jakarta, marking a resolution to a dispute over local investment regulations.
Back in October, Indonesia imposed a ban on the iPhone 16 due to Apple’s failure to comply with the country’s requirement that 40% of components used in smartphones be locally sourced. This regulation was put in place as part of Indonesia’s broader push to attract significant investments from global tech companies and boost local manufacturing.
While the exact terms of the agreement were not disclosed, and details about when the public will be informed remain unclear, sources indicate that a compromise was reached. Prior to this development, Indonesia had already rejected Apple’s $100 million investment proposal in November, citing concerns over its fairness, a decision that significantly escalated tensions between the two sides.
In response to the regulatory challenge, Apple increased its offer, proposing a $1 billion investment to build an AirTag factory in Indonesia. The Indonesian government has long been pushing foreign companies, particularly in the tech sector, to contribute to local economic development by setting up production operations in the country.
Industry Minister Agus Gumiwang Kartasasmita had previously stated that Apple’s investments in Indonesia had fallen short compared to the company’s commitments in other markets. However, despite the ban on the iPhone 16, Indonesia allowed the entry of the device for personal use, with around 9,000 units of the new model reportedly entering the country by the end of 2024.
In addition to Apple, Indonesia also imposed similar restrictions on the sale of Google Pixel phones, citing their failure to meet the 40% local production requirement.
The resolution of this dispute follows a period of growing interest between Apple and Indonesia. Last year, Apple CEO Tim Cook visited the country as part of efforts to strengthen its presence in Southeast Asia. During his visit, Cook held meetings with both President Joko Widodo and his successor, Prabowo Subianto, focusing on expanding Apple’s investments in the region, including the growth of its developer academies in Indonesia.
At this stage, neither Apple nor Indonesia’s industry ministry has issued an official statement, but the lifting of the sales ban marks a key milestone in the ongoing negotiations between the two parties.