iPhone 16 Sales Ban Lifted, Apple Ready to Invest $1 Billion in Indonesia
The ban on iPhone 16 sales in Indonesia has finally been lifted after the government and Apple reached an agreement, including investment commitments. Minister of Industry Agus Gumiwang confirmed that the iPhone 16 will soon be available in Indonesia. During a press conference at the Ministry of Industry on February 26, 2025, he stated that with the signing of a Memorandum of Understanding (MoU) and an investment agreement, the iPhone 16 can be sold before Eid.
Apple chose to meet the requirements for Domestic Component Level (TKDN) certification by establishing a training and development center. As a result, the American company remains the only brand without an assembly plant in Indonesia. Additionally, Apple has settled a $10 million debt accumulated from 2020 to 2023, with payment made on December 16, 2024.
As part of the sanctions, Apple has brought in companies within its global supply chain, such as Luxshare-ICT, which will invest $150 million to manufacture AirTags in Batam. This production is expected to fulfill 65% of the global demand for AirTags, with batteries fully sourced from the domestic industry, ensuring a high TKDN level. Additionally, Long Harmony will establish a production line in Bandung as part of Apple’s global supply chain for accessories, including components for AirPods Max.
Why Was the iPhone 16 Banned in Indonesia?
The ban on iPhone 16 sales began after its launch in September 2024 when, by October, the device had not appeared on the TKDN list of the Ministry of Industry. Agus previously explained that the iPhone 16 could not enter Indonesia because Apple had not renewed its TKDN certification, which had expired.
Apple’s previous investment in Indonesia amounted to IDR 1.48 trillion, but it was still IDR 240 billion short of the initial commitment of IDR 1.71 trillion. The company also proposed a $100 million investment to build a development center, but the proposal was rejected for being deemed unfair. The government assessed fairness based on several factors, including Apple’s investments in other countries such as Vietnam and India, which reached $15.84 billion and created 200,000 jobs. Additionally, investments from other smartphone manufacturers in Indonesia, such as Samsung and Xiaomi, were also considered.
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Negotiations and Final Agreement
In January 2025, Apple representatives, including Nick Amman, Vice President of Global Policy at Apple, visited the Ministry of Industry. After the meeting, Agus explained that the negotiations aimed to ensure Apple’s investment was fair compared to other countries and other smartphone manufacturers in Indonesia. The meeting lasted three hours, during which Apple representatives first spoke with Agus for 30 minutes before meeting with the technical team led by Director-General of Ilmate, Setia Darta.
Setia stated that the ministry had responded to Apple’s concerns and provided feedback on the company’s proposals. At that time, there was still no certainty regarding the fate of the iPhone 16 in Indonesia because an agreement had not yet been reached. However, one month after the meeting, the Ministry of Industry and Apple finally reached an agreement, allowing the iPhone 16 to enter the Indonesian market.
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Apple to Invest $1 Billion in Indonesia
According to reports from Business Insider, Apple and the Ministry of Industry of the Republic of Indonesia have reached an agreement for an investment of $1 billion (approximately IDR 16.3 trillion). This investment was proposed as a condition for the Indonesian government to approve the distribution of the iPhone 16 in the country.
In addition to the financial investment, Apple is also committed to providing training in Indonesia, particularly in research and development within its ecosystem. The goal of this training is to enable local talent to develop similar software independently. The investment will also be allocated to programs beyond the Apple Academy, although details on these programs have yet to be announced. However, as of now, Apple has no plans to manufacture iPhones in Indonesia.
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