Apple's $1 Billion Investment May Soon End Indonesian iPhone Ban

Apple is close to reaching an agreement with Indonesia to lift the ban on iPhone 16 sales in the country after securing preliminary approval for a $1 billion investment proposal, according to Bloomberg.

iPhone 16 Apple Store
Indonesian President Prabowo Subianto is said to have given his support for the government to accept Apple's investment plan following a weekend briefing. The proposal includes establishing manufacturing facilities in the country, with one of Apple's suppliers set to build an AirTag production plant on Batam island.

The Batam facility is expected to initially employ 1,000 workers and will eventually account for 20% of global AirTag production. The location was chosen for its free-trade zone status, which provides tax exemptions and import duty benefits.

Additional investments will fund a separate manufacturing facility in Bandung for producing other accessories, as well as expanding Apple's existing developer academies in Indonesia. President Prabowo has directed his Economic Affairs Ministry to finalize the agreement, but no specific timeline has been provided for lifting the iPhone 16 sales ban.

The ban was implemented in October after Indonesian authorities determined Apple had failed to meet the country's requirement for 40% domestic content in smartphones. Apple's latest proposal represents a significant increase from its previous offers of $10 million and $100 million, which were rejected by the government.

If approved, the deal would mark a success for President Prabowo's efforts to attract foreign investment while demonstrating the effectiveness of Indonesia's strategy to pressure international companies into developing products locally. The country remains a significant market for Apple, with over half of its 278 million residents under the age of 44.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Popular Stories

iOS 26 Feature

iOS 26.1 to iOS 26.4 Will Add These New Features to Your iPhone

Wednesday October 1, 2025 1:26 pm PDT by
iOS 26 was released last month, but the software train never stops, and iOS 26.1 beta testing is already underway. So far, iOS 26.1 makes both Apple Intelligence and Live Translation on compatible AirPods available in additional languages, and it includes some other minor changes across Apple Music, Calendar, Photos, and Safari. More features and changes will follow in future versions,...
john ternus on stage

Gurman: Major Apple Leadership Shakeup Impending With John Ternus as Next CEO

Monday October 6, 2025 6:21 am PDT by
Apple is entering its most significant leadership transition in more than a decade as multiple senior executives prepare to depart and CEO Tim Cook begins to shape the company's next generation of leaders, according to Bloomberg's Mark Gurman. In the latest edition of his "Power On" newsletter, Gurman explained that Jeff Williams, who was viewed as Cook's potential successor for several...
AirPods Pro Firmware Feature

Apple Releases New Firmware for AirPods Pro 3, AirPods Pro 2 and AirPods 4

Tuesday October 7, 2025 11:27 am PDT by
Apple today released new firmware designed for the AirPods Pro 3, prior-generation AirPods Pro 2, and the AirPods 4 models. The firmware has a build number of 8A358, up from 8A356. There's no word on what's include in the updated firmware, but the prior 8A356 update added iOS 26 features to the AirPods Pro 2, AirPods Pro 3, and AirPods 4 with ANC. The software introduced better audio quality ...
ios 26 1 slide to stop

Apple Fixes Alarms in iOS 26.1

Monday October 6, 2025 11:56 am PDT by
With the second beta of iOS 26.1, Apple updated the design of alarms set on the iPhone, making them harder to dismiss than before. Stopping an alarm in iOS 26.1 beta 2 requires a new Slide to Stop gesture rather than a simple tap. You can continue to tap to snooze an alarm, but if you want to turn it off entirely, you need to use a swipe. Transitioning from a tap to a slide gesture to...
ipad mini 7 feature blue

iPad Mini 8 on the Way: Expected Features and Release Timeline

Monday October 6, 2025 5:05 am PDT by
A new iPad mini is "absolutely" on the way, according to Bloomberg's Mark Gurman. So what should we expect from the successor to the iPad mini 7 that Apple released a year ago? Processor and Performance Apple is working on a next-generation version of the iPad mini (codename J510/J511) that features the A19 Pro chip, according to information found in code that Apple mistakenly shared in...
iOS 26 Feature

iOS 26 Adds These 200 New Features and Changes to Your iPhone

Saturday October 4, 2025 8:19 am PDT by
Apple's website offers a list of nearly 200 new features and changes (PDF file) included in the software update, released last month. Apple also shared equivalent lists for iPadOS 26 and macOS Tahoe. iOS 26 is compatible with the iPhone 11 and newer. To install the update, open the Settings app on your iPhone, tap on General, and tap on Software Update. Below, we have highlighted eight ...
iCloud iPhone 17 Pro

Apple Highlights Five Perks for iPhone Users Who Pay for iCloud Storage

Monday October 6, 2025 6:29 am PDT by
After launching new iPhones last month, Apple is promoting iCloud+ with a prominent banner on its home page, in a bid to boost its services revenue. In addition to more storage, all iCloud+ plans include five perks for iPhone users. As a refresher, iCloud includes 5GB of storage for free. If you want extra storage, you need to subscribe to an iCloud+ plan. In the United States, prices range...
iOS 26

Everything New in iOS 26.1 Beta 2

Monday October 6, 2025 3:54 pm PDT by
Apple released the second beta of iOS 26.1 and iPadOS 26.1, introducing useful changes to alarms, multitasking on the iPad, and more. There are also subtle tweaks to some of the Liquid Glass design elements as Apple continues to refine iOS 26. Alarms and Timers Alarms set using the Clock app now have a slide to stop button rather than a tap to stop button on the Lock Screen. To snooze an...
macbook pro pink

M5 MacBook Pro Could Launch in October as M4 Model Faces Supply Constraints

Monday October 6, 2025 3:23 pm PDT by
Supplies of the 14-inch M4 MacBook Pro model appear to be constrained amid rumors that an upgraded M5 model could launch as soon as this year. As noted by Bloomberg's Mark Gurman, custom configurations of the M4 MacBook Pro model have a delayed shipping date and will not be delivered to customers until October 23 to 28. The restricted supply could be an indication that Apple is planning to...

Top Rated Comments

mavis Avatar
11 months ago
Sounds like extortion to me. ?
Score: 15 Votes (Like | Disagree)
iPay Avatar
11 months ago
That should [S]buy enough generals[/S] reinstate enough confidence to get back in business.
Score: 5 Votes (Like | Disagree)
wbeasley Avatar
11 months ago
every country will try this now... give in to extortion once and you set a dangerous precedent... :(
Score: 5 Votes (Like | Disagree)
surferfb Avatar
11 months ago

How is it extortion?

If Apple wants to do business in Indonesia and access Indonesia customers, they have to meet Indonesia requirements (e.g., 40% domestic content, some sort of investment, pay taxes, etc.) and if app developers want to do business on iOS and access iOS customers (at least for the non-EU markets), they have to meet Apple requirements which includes paying Apple to sell apps/in-app products.

Both the Indonesia and iOS/app scenarios are legal, unlike extortion.
Looking forward to your support for the incoming American administration demanding that foreign companies pay a billion dollars before being able to sell their products in the US!
Score: 5 Votes (Like | Disagree)
sparkie7 Avatar
11 months ago
Apple bean-counters would have done their calculations, spreadsheets + projections. It was a business decision that favoured Apple. Otherwise they wouldn't have done the deal.
Score: 4 Votes (Like | Disagree)
StoneJack Avatar
11 months ago
Make Indonesia great again! :)
Score: 4 Votes (Like | Disagree)