Apple's $1 Billion Investment May Soon End Indonesian iPhone Ban - MacRumors
Skip to Content

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

iPhone Duo Display Cracking

Apple Alerts Stores to iPhone Duo's Display Cracking Issue

Friday October 30, 2026 3:20 pm PDT by
In a memo shared with Apple Stores and Apple Authorized Service Providers this week, and later obtained by MacRumors, Apple provided technicians with guidance on how to diagnose and address the iPhone Duo's inner display cracking issue. If a customer reports the issue, Apple advised technicians to inspect the iPhone Duo and repair or replace it in accordance with their standard procedures....
Everything New Your iPhone Can Do on iOS 27

14 New Things Your iPhone Can Do in iOS 27.2

Friday October 30, 2026 12:42 pm PDT by
Apple released iOS 27.2 on October 26, bringing enhancements to Siri AI, adding Suggestions in Messages, and sneaking in a string of smaller additions across Photos, Podcasts, Games, Apple TV, and FaceTime. iOS 27.2 is available to download to your device now via Settings ➝ General ➝ Software Update. Note that some features may not be available in all regions or on all iPhone models....
apple pro tell logo

Apple Launching Five New Products This Friday

Monday November 2, 2026 1:22 am PST by
Apple is releasing five new products this Friday, November 6, following pre-orders that opened last week, including its first touchscreen MacBook Pro models. The following new products will be available from Friday: iPad mini with OLED display and A20 Pro chip iMac with M6 chip 14-inch MacBook Pro with M6 chip 14-inch MacBook Pro with OLED touchscreen 16-inch MacBook Pro with OLED...

Top Rated Comments

mavis Avatar
25 months ago
Sounds like extortion to me. 😐
Score: 15 Votes (Like | Disagree)
surferfb Avatar
25 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)
wbeasley Avatar
25 months ago
every country will try this now... give in to extortion once and you set a dangerous precedent... :(
Score: 5 Votes (Like | Disagree)
iPay Avatar
25 months ago
That should buy enough generals reinstate enough confidence to get back in business.
Score: 5 Votes (Like | Disagree)
StoneJack Avatar
25 months ago
Make Indonesia great again! :)
Score: 4 Votes (Like | Disagree)
sparkie7 Avatar
25 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)
Latest Stories
Apple TV 4K Pre-Order Discount Returns at Amazon
Apple TV 4K Pre-Order Discount Returns at Amazon
19 minutes ago
Zoom and These Microsoft Apps Now Optimized for iPhone Duo
Zoom and These Microsoft Apps Now Optimized for iPhone Duo
40 minutes ago
Canva Brings Free All-in-One Affinity App to iPad
Canva Brings Free All-in-One Affinity App to iPad
54 minutes ago
iPhone Duo: Latest Buyer Wait Times
iPhone Duo: Latest Buyer Wait Times
2 hours ago
This iPhone Duo Screen Setting Is Proving Hard to Change
This iPhone Duo Screen Setting Is Proving Hard to Change
3 hours ago
Apple HomeView Could Double as a Security Camera
Apple HomeView Could Double as a Security Camera
5 hours ago
Apple Launching Five New Products This Friday
Apple Launching Five New Products This Friday
6 hours ago
Nearly Every M5 MacBook Air Now $200 Off on Amazon
Nearly Every M5 MacBook Air Now $200 Off on Amazon
21 hours ago
Apple's HomeView Ships With Six-Month-Old Software
Apple's HomeView Ships With Six-Month-Old Software
23 hours ago
Three New iPads Rumored to Launch in First Half of 2027
Three New iPads Rumored to Launch in First Half of 2027
23 hours ago
Apple Offers Steps to Fix Daylight Saving Time Bug on Apple Watch
Apple Offers Steps to Fix Daylight Saving Time Bug on Apple Watch
1 day ago
Apple Watch Ultra 4 Hits All-Time Low Price With Amazon's $99 Discount
Apple Watch Ultra 4 Hits All-Time Low Price With Amazon's $99 Discount
2 days ago
Reminder: Apple's Big Discount on Beats 360 Ear Cushions Ends Today
Reminder: Apple's Big Discount on Beats 360 Ear Cushions Ends Today
2 days ago
Here's a New Tour of Apple's HomeView Software
Here's a New Tour of Apple's HomeView Software
2 days ago
Apple Reveals New iPad Mini's Battery Capacity
Apple Reveals New iPad Mini's Battery Capacity
2 days ago
Top Stories: Apple's Big MacBook Pro, iPad mini and iMac Updates
Top Stories: Apple's Big MacBook Pro, iPad mini and iMac Updates
2 days ago
'Pluribus' Season 2 Reportedly Starts Production Today
'Pluribus' Season 2 Reportedly Starts Production Today
2 days ago
iPhone 18 Pro Sales Surge in China, Offsetting Decline in U.S. and Japan
iPhone 18 Pro Sales Surge in China, Offsetting Decline in U.S. and Japan
2 days ago
HomeView Software 27.2: Wallpapers, Control Center, and More
HomeView Software 27.2: Wallpapers, Control Center, and More
3 days ago
Apple Alerts Stores to iPhone Duo's Display Cracking Issue
Apple Alerts Stores to iPhone Duo's Display Cracking Issue
3 days ago
iOS 27.3 Will Enable These Apple Intelligence Features in China
iOS 27.3 Will Enable These Apple Intelligence Features in China
3 days ago
Apple Says iOS 27.3 Beta Coming Next Week
Apple Says iOS 27.3 Beta Coming Next Week
3 days ago
Apple's Flash Storage Suppliers Are Finally 'Getting Their Revenge'
Apple's Flash Storage Suppliers Are Finally 'Getting Their Revenge'
3 days ago
14 New Things Your iPhone Can Do in iOS 27.2
14 New Things Your iPhone Can Do in iOS 27.2
3 days ago
iPhone Duo Review: One Week Later
iPhone Duo Review: One Week Later
3 days ago
Samsung Mocks iPhone Duo Display Cracks in New Ad Campaign
Samsung Mocks iPhone Duo Display Cracks in New Ad Campaign
3 days ago
The MacRumors Show: OLED MacBook Pro, iPad Mini 8, and More
The MacRumors Show: OLED MacBook Pro, iPad Mini 8, and More
3 days ago
MacBook Pro With Touch Display: 15 More Details Revealed
MacBook Pro With Touch Display: 15 More Details Revealed
3 days ago
Russia Places Apple on State Surveillance Registry
Russia Places Apple on State Surveillance Registry
3 days ago
Halloween Weekend Brings Discounts on Apple Accessories and Pre-Orders
Halloween Weekend Brings Discounts on Apple Accessories and Pre-Orders
3 days ago