Indonesia lifts its ban on the iPhone 16 after Apple commits to major investments, including a semiconductor R&D facility and accessory production plants.
.jpg "Apple’s iPhone 16 Cleared for Sale in Indonesia") |
| Apple wins approval to sell the iPhone 16 in Indonesia after securing a deal to invest in semiconductor and accessory production facilities. Image: ChicHue |
Jakarta, Indonesia – March 1, 2025:
Indonesia has officially lifted its ban on the iPhone 16 after Apple secured an investment deal with the government, ending months of negotiations over local manufacturing requirements. The decision follows Apple's commitment to build a semiconductor research and development facility, the first of its kind in Asia, as well as two accessory production plants.
The Indonesian government had blocked iPhone 16 sales in October 2024, enforcing a policy that required at least 40% of smartphone components to be locally sourced. Apple initially proposed a $100 million investment, which was rejected as insufficient compared to its commitments in neighboring Vietnam and Thailand.
Industry Minister Agus Gumiwang Kartasasmita confirmed that Apple revised its offer, agreeing to establish a semiconductor R&D facility, an accessory manufacturing plant in Bandung, West Java, and an AirTag production site in Batam near Singapore. The Batam factory, worth $150 million, is expected to be completed by early 2026.
Negotiations were described as “tough,” but with the agreement finalized, iPhone 16 sales will begin in Indonesia “as soon as possible,” Kartasasmita said. Apple Indonesia welcomed the decision, stating, “We’re excited to expand our investments across Indonesia and can't wait to bring the iPhone 16 family, including the all-new iPhone 16e, to our customers.”
Indonesia, Southeast Asia’s largest economy, has increasingly used regulatory measures to push foreign companies into local investments. Trade analyst James Guild noted that the country previously banned TikTok Shop, delayed Netflix’s entry, and restricted nickel exports to secure favorable investment terms.
Despite the ban, authorities estimated that at least 9,000 iPhone 16 units had already entered Indonesia through personal imports. The government also imposed restrictions on Google Pixel devices and recently fined Google $20 million for monopolistic practices.
With the new agreement in place, Apple will move forward with its investment commitments, and iPhone 16 sales in Indonesia are set to resume in the coming weeks.