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

airpods pro 3 purple

New, Higher End AirPods Pro Coming This Year

Tuesday January 20, 2026 9:05 am PST by
Apple is planning to debut a high-end secondary version of AirPods Pro 3 this year, sitting in the lineup alongside the current model, reports suggest. Back in September 2025, supply chain analyst Ming-Chi Kuo reported that Apple is planning to introduce a successor to the AirPods Pro 3 in 2026. This would be somewhat unusual since Apple normally waits around three years to make major...
smaller dynamic island iphone 18 pro Filip Vabrous%CC%8Cek

iPhone 18 Pro Leak: Smaller Dynamic Island, No Top-Left Camera Cutout

Tuesday January 20, 2026 2:34 am PST by
Over the last few months, rumors around the iPhone 18 Pro's front-panel design have been conflicted, with some supply-chain leaks pointing to under-display Face ID, reports suggesting a top-left hole-punch camera, and debate over whether the familiar Dynamic Island will shrink, shift, or disappear entirely. Today, Weibo-based leaker Instant Digital shared new details that appear to clarify the ...
Apple Logo Spotlight

Apple Expected to Unveil Five All-New Products This Year

Wednesday January 21, 2026 10:54 am PST by
In addition to updating many of its existing products, Apple is expected to unveil five all-new products this year, including a smart home hub, a Face ID doorbell, a MacBook with an A18 Pro chip, a foldable iPhone, and augmented reality glasses. Below, we have recapped rumored features for each product. Smart Home Hub Apple home hub (concept) Apple's long-rumored smart home hub should...
Liquid Glass App Store Feature

App Store and Apple TV Experiencing Outage

Tuesday January 20, 2026 4:36 pm PST by
Apple's App Store, iTunes Store, and Apple TV service are experiencing an outage at the current time, according to Apple's System Status page. Apple says that some users may be experiencing issues with the App Store and iTunes Store. Apple also says some users may be seeing intermittent issues with Apple TV. The Apple TV Channels feature is down too, and users may be unable to access some...
airtag prime day 2

Apple Developing AirTag-Sized AI Pin With Dual Cameras

Wednesday January 21, 2026 12:31 pm PST by
Apple is working on a small, wearable AI pin equipped with multiple cameras, a speaker, and microphones, reports The Information. If it actually launches, the AI pin will likely run the new Siri chatbot that Apple plans to unveil in iOS 27. The pin is said to be similar in size to an AirTag, with a thin, flat, circular disc shape. It has an aluminum and glass shell, and two cameras at the...

Top Rated Comments

mavis Avatar
14 months ago
Sounds like extortion to me. ?
Score: 15 Votes (Like | Disagree)
iPay Avatar
14 months ago
That should [S]buy enough generals[/S] reinstate enough confidence to get back in business.
Score: 5 Votes (Like | Disagree)
wbeasley Avatar
14 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
14 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
14 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
14 months ago
Make Indonesia great again! :)
Score: 4 Votes (Like | Disagree)