JAKARTA (Kashmir English): Indonesia has entered into a deal with Apple to lift the ban on iPhone 16 sales in the country, following a months-long standoff.
The agreement will allow the American multinational technology company headquartered in Cupertino, California, in Silicon Valley, to sell iPhone 16 after committing to a $1 billion investment in Indonesia.
The agreement comes after Apple agreed to invest $1 billion in Indonesia, a move that is likely to significantly boost local manufacturing and technology development.
Indonesia had imposed a ban on the sale of iPhone 16 in October 2024 due to Apple’s failure to meet the government’s regulations, which require 40% of the phone’s components to be locally sourced.
According to the deal reported by local media, the agreement will allow Apple to resume selling the iPhone 16 in the Southeast Asian country under certain conditions.
According to a government official, Apple will build two new facilities in the country as part of the agreement. The first will be located in Bandung, West Java, where the company will produce accessories, while another one will be in Batam, where Apple will invest $150 million to produce AirTags with local suppliers.
MoU to lift ban on iPhone 16 sales
According to Industry Minister Agus Gumiwang Kartasasmita, the MoU signed with Apple will lead to the revocation of the iPhone 16 sales ban. It was imposed over non-compliance with local content rules, said the Minister.
An official announcement to this regard is yet to come. The deal marks a significant step in improving Indonesia’s relationship with one of the world’s leading tech companies.
According to a government source, the terms to lift the sales ban had been agreed upon, though details remain scarce.
The technology company has been under pressure to increase its investment in Indonesia as part of a broader push to diversify its supply chain away from China.
