Indonesia allows Apple to sell iPhone 16 in the country, but on these terms

Indonesia will soon lift its ban on the iPhone 16, ending a months-long standoff with Apple after the tech giant agreed to invest more than $300 million in the Southeast Asian nation, Indonesia's Industry Minister announced Wednesday.
The ban, imposed in October 2024, stemmed from Apple's failure to meet Indonesia's requirements that smartphones sold domestically contain at least 40% locally-produced components. After what Minister Agus Gumiwang Kartasasmita described as "tricky" negotiations, both sides have reached an agreement.
As part of the deal, Apple will invest in a software research and development center near Jakarta and establish manufacturing facilities to produce components for its products, including AirTags and AirPods. Reports indicate Apple will invest approximately $1 billion overall, with up to 20% of global AirTag production eventually taking place in Indonesia.
"There's a principle of justness that we're trying to uphold," Kartasasmita said at a press conference. "As much as it can add value to the red and white," he added, referencing the Indonesian flag.
The agreement represents a partial retreat by Indonesian authorities, who had initially pressed Apple to manufacture iPhones locally. Instead, Apple will focus on producing accessories and investing in local talent development through training programs and coding academies.
The ban had blocked Apple from selling its latest smartphones in a market of approximately 280 million people, though the company was already struggling to gain traction there. According to research firm Canalys, Apple wasn't among the top five smartphone brands in Indonesia during the third quarter of 2024, trailing Oppo, Xiaomi, Transsion, Samsung, and Vivo.
No specific timeline was given for when the iPhone 16 will officially return to Indonesian stores, but the minister indicated Apple is now in the process of obtaining the necessary local content certification.