Indonesia Upholds iPhone 16 Sales Ban Despite Apple’s $1 Billion Investment Plan

The Indonesian government has upheld its ban on the sale of Apple’s iPhone 16, citing the tech giant’s failure to meet the country’s stringent domestic content requirements.

This decision comes despite Apple’s pledge to invest $1 billion in the country, which includes plans to establish an AirTag factory on Batam island.

Ban on iPhone 16 Sale in Indonesia

In October 2024, Indonesia banned sales of iPhone 16 and requires local production for at least 40% of smartphone components sold in the country. The move aimed to encourage more domestic production, attract global tech companies’ investment, but ran into an impasse with Apple.

Investment Minister Rosan Roeslani revealed that an Apple AirTag factory, which reportedly will supply 65 percent of the global market, again shows long-term commitment to the region.

Industry Minister Agus Gumiwang Kartasasmita dismissed it, describing the AirTags as “accessories, not components or parts of gadgets,” and therefore fails to meet local content rules for iPhone production.

“Until this afternoon, the ministry doesn’t have any reason to issue the domestic component level certificate for Apple products, especially iPhone 16,” Kartasasmita said during a press briefing on Wednesday.

No Agreement Reached

Apple’s representatives met with Indonesian officials earlier this week but were unable to reach an agreement. The government reportedly presented a counterproposal, but Apple has yet to respond.

Kartasasmita emphasized that the government remains firm in its position. “If Apple wants to sell iPhone 16 as soon as possible, the ball is in their court. Please respond to our counterproposal immediately,” he said.

According to him, the government has never compromised on its stand. Apple earlier proposed an extra $100 million in investments to end the ban, but this proposal was turned down by Indonesia in November.

Despite the ban, around 9,000 iPhone 16 units have already entered the country through non-commercial channels. Indonesia also banned the sale of Google Pixel phones for failing to meet the same 40% local parts requirement, although around 22,000 units managed to enter the market unofficially last year.

That would change as the AirTag factory makes Indonesia play an increasingly integral role in global tech supply chains. Officials have, however, made it clear that such a move won’t be enough by itself.

“Apple should negotiate with us so that we can issue the local content certificate,” Kartasasmita said, while hinting at potential sanctions if the company continues to flout the local investment rules.

As talks continue, whether Apple will conform to Indonesia’s demands or opt to lose ground into the country’s fast-growing market of smartphones cannot be determined at this point in time.

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