iPhone 16 Still Banned in Indonesia Despite $1B Apple Investment Deal

Apple is still barred from selling iPhone 16 models in Indonesia despite agreeing to build a local production facility there, as it has not met domestic content rules, the country's industry minister said on Wednesday (via Reuters).

iPhone 16 Apple Store
Indonesia's minister of industry, Agus Gumiwang Kartasasmita, reportedly met with Apple's VP of global government affairs, Nick Ammann, on January 7 to discuss Apple's investment proposal. However, Agus later implied that the company's proposal was not yet adequate. "If it is $1 billion, then that is not enough," he told reporters after the meeting.

Last year, Indonesian authorities banned iPhone 16 sales after they determined Apple had failed to meet the country's requirement for 35% domestic content in smartphones. Apple has since offered a $1 billion investment in the country that includes building an AirTag factory. Apple's offer is a significant increase from its previous offers of $10 million and $100 million, which were rejected by the government.

Agus confirmed Apple had agreed to build a facility producing AirTag tracking devices on Indonesia's Batam island, close to Singapore, but that still would not count as a locally-made iPhone part.

"There is no basis for the ministry to issue a local content certification as a way for Apple to have the permission to sell iPhone 16 because (the facility) has no direct relations," he said, adding the ministry would only count phone components.

Indonesia's investment minister on Tuesday said the factory would start operations next year. The agreement will be seen as 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

iOS 26.1 Coming Soon: New Features for Your iPhone and Release Date

Monday October 27, 2025 7:55 am PDT by
The upcoming iOS 26.1 update includes a handful of new features and changes for iPhones, including a toggle for changing the appearance of the Liquid Glass design, "slide to stop" for alarms in the Clock app, and more. Below, we outline key details about iOS 26.1. Release Date Given that Apple has yet to seed an iOS 26.1 Release Candidate, which is typically the final beta version, the...
iOS 26

6 New Things Your iPhone Can Do in iOS 26.1

Wednesday October 29, 2025 4:22 am PDT by
Apple is about to drop iOS 26.1, the first major point release since iOS 26 was rolled out in September, and there are at least six notable changes and improvements to look forward to. We've rounded them up below. Apple has already provided developers and public beta testers with the release candidate version of iOS 26.1, which means Apple will likely roll out the update to all compatible...
maxresdefault

Apple TV 4K Could Still Launch Before 2025 Ends: All the Rumored Features

Monday October 27, 2025 4:51 pm PDT by
Apple is designing an updated version of the Apple TV 4K, and rumors suggest that it could come out sometime in the next couple of months. We're not expecting a major overhaul with design changes, but even a simple chip upgrade will bring major improvements to Apple's set-top box. Subscribe to the MacRumors YouTube channel for more videos. We've rounded up all the latest Apple TV rumors. ...
iOS 26

Apple Seeds iOS 26.1, iPadOS 26.1, and macOS Tahoe 26.1 Release Candidates

Tuesday October 28, 2025 1:07 pm PDT by
Apple today provided developers and public beta testers with the release candidate versions of upcoming iOS 26.1, iPadOS 26.1, macOS Tahoe 26.1, tvOS 26.1, watchOS 26.1, and visionOS 26.1 updates for testing purposes. The RCs betas come a week after Apple released the fourth betas. The new betas can be downloaded from the Settings app on a compatible device by going to General > Software...
M6 MacBook Pro Feature 1

M6 MacBook Pro: Release Date, Pricing, and What to Expect

Monday October 27, 2025 9:15 am PDT by
Apple this month refreshed the 14-inch MacBook Pro base model with its new M5 chip, and higher-end 14-inch and 16-inch MacBook Pro models with M5 Pro and M5 Max chips are expected to follow in early 2026. However, these machines will represent the final update to the current design, with Apple reportedly developing a completely new version of the MacBook Pro packed with next-generation hardware...
iPhone 17 Pro Cosmic Orange

8 Reasons to Wait for Next Year's iPhone 18 Pro

Thursday October 30, 2025 4:42 am PDT by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models at the same time, which is why we often get rumored features months ahead of launch. The iPhone 18 series is no different, and we already have a good idea of what to expect for the iPhone 18 Pro and iPhone 18 Pro Max. One thing worth...
macos tahoe

Here Are Apple's Release Notes for macOS Tahoe 26.1

Tuesday October 28, 2025 1:21 pm PDT by
Apple today provided developers and public beta testers with the release candidate version of macOS Tahoe 26.1, which means the update will likely see a public launch next week. The release candidate includes notes on what's in the update, so we have a full picture of the new features that Apple has included. macOS Tahoe 26.1 adds AutoMix support over AirPlay, improved FaceTime audio...
ipad mini 7 feature blue

OLED iPad Mini: Release Date, Pricing, and What to Expect

Wednesday October 29, 2025 7:13 am PDT by
Rumors are stoking excitement for the next-generation iPad mini that Apple is reportedly close to launching. So what should we expect from the successor to the iPad mini 7 that Apple released over a year ago? Read on to find out. 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...
iPhone Car Key Kia

Another Vehicle Brand Gaining iPhone Car Keys Support

Tuesday October 28, 2025 5:27 am PDT by
Apple is preparing to bring support for its digital car key feature to Jetour vehicles, according to evidence uncovered on Apple's backend by MacRumors contributor Aaron Perris. Introduced in 2022, Car Keys allows an iPhone or Apple Watch to unlock a vehicle through the Wallet app. A digital version of a car key is stored in Wallet, and unlocking can be done by holding an Apple Watch or...

Top Rated Comments

macmac30 Avatar
11 months ago
Anyone know what the sales opportunity lost is here? I would say Indonesia can F all the way off at this point! Indonesia should be careful…governments have been overthrown for less!
Score: 35 Votes (Like | Disagree)
Johnny907 Avatar
11 months ago
Eh give it up, Apple. Stop begging for approval from a corrupt government looking for outside grift.
You already contribute enough with your H1B hires.
If they don’t see the benefit of your products in their country then cut ties and move on.
Score: 33 Votes (Like | Disagree)
mystery hill Avatar
11 months ago
Next headline: "Apple CEO Tim Cook Donating $1 Million to Indonesian President's Fund"
Score: 22 Votes (Like | Disagree)
wbeasley Avatar
11 months ago
So will Indonesia now also demand all laptops and tvs and white goods are 35% local content?

EU will no doubt be watching and waiting with baited breath in case this is another opportunity they can screw Apple over...
Score: 21 Votes (Like | Disagree)
2540497 Avatar
11 months ago
Side with Apple here.

I get what poor Indonesia are trying to do but if every country had this policy the supply chain would be a total mess.

One of these days Apple is just going to say 'sod it' and set a precedent by withdrawing.

Side note: I don't understand why everyone is going all political and talking about things like the Iraq invasion. Leave it out, this isn't X.
Score: 9 Votes (Like | Disagree)
wbeasley Avatar
11 months ago
Problem Solved:

Apple to include 1kg of Indonesian rice with each phone.
Can be used to eat while using phone or a tech-related drying mechanism if phone gets wet.

Bought in bulk, this should add $1 to each phone cost.

You're welcome Apple.
Score: 9 Votes (Like | Disagree)