The iPhone 16 sales to be finally allowed in the world's fourth-most-populous country

Back in the fall of 2024, Indonesia banned the sales of the iPhone 16 series: today, the fourth most populous country in the world and Apple have reached an agreement to lift the ban.

Thus, the five-month dispute is ending and the Cupertino giant is promising to increase its investment commitment in the country to $1 billion. The Ministry of Industry, which had upheld the ban, is expected to sign a memorandum of agreement with Apple as early as this week. A press briefing is also planned, and the ministry intends to issue the necessary permits to allow iPhone 16 sales as soon as possible.

The dispute began in October because Apple's iPhone 16 failed to meet the requirement that at least 40% of its components must be locally produced.

However, in early January we learned that several thousand iPhone 16 units had entered the country, based on data from the Centralized Equipment Identity Register (CEIR) system. These devices arrived through two channels: personal luggage, which allows a maximum of two units per traveler and prohibits resale, and diplomatic shipments managed by the Ministry of Communication and Information Technology.

Now, Apple will invest in training local talent in research and development related to its products, enabling them to develop similar software and design their own technologies. This initiative aligns with the government's push for Apple to establish R&D facilities in Indonesia.

The innovation investment will be carried out through new programs separate from the existing Apple academies in the country. However, Apple does not currently plan to manufacture iPhones in Indonesia.



While both sides have agreed on the terms for lifting the ban, there remains a possibility of last-minute changes, as Indonesia has previously reversed decisions. Apple and the Ministry of Industry have not yet issued official statements regarding the agreement.

Despite the unexpected delay in January, negotiations had been moving forward. Last week, Industry Minister Agus Gumiwang Kartasasmita announced that Apple had settled a $10 million debt for non-compliance with local regulations between 2020 and 2023.

For Apple, securing access to Indonesia's large and growing consumer base is critical, especially as sales in China decline. Although Apple is not among the top five smartphone brands in Indonesia, the country's population of almost 280 million, with a young and tech-savvy demographic, presents a valuable opportunity. Well – duh! – as the expression goes.

Apple's $1 billion investment plan includes establishing a production plant on Batam Island for AirTags, with operations managed by supplier Luxshare Precision Industry Co. This facility is expected to handle 20% of global AirTag production. Additionally, Apple plans to set up another plant in Bandung for accessories and continue funding Apple academies to provide students with technical skills such as coding.