Skip to Content

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

AirPods Max 2 Feature

Apple Announces AirPods Max 2 With H2 Chip and More

Monday March 16, 2026 6:12 am PDT by
Apple today unveiled AirPods Max 2, with key upgrades including the H2 chip, increased active noise cancellation, improved sound quality, and features such as Adaptive Audio, Conversation Awareness, Voice Isolation, and Live Translation. The new AirPods Max have the same overall design as the previous generation, with most of the new features coming from the upgrade to the H2 chip:- Adaptive ...
Apple Logo Sketch Feature

Apple Unveiled a Surprise New Product Today

Monday March 16, 2026 10:50 am PDT by
Surprise! Apple today unveiled the AirPods Max 2, despite no rumors suggesting that a new version of Apple's over-ear headphones were imminent. Key upgrades compared to the previous AirPods Max include Apple's H2 chip, increased active noise cancellation, improved sound quality, and features such as Adaptive Audio, Conversation Awareness, Voice Isolation, and Live Translation. AirPods Max ...
apple design award 2025

Apple Announces 2025 Design Award Winners Ahead of WWDC 2025

Tuesday June 3, 2025 10:14 am PDT by
As we wait for WWDC to kick off next Monday, Apple today announced the winners of its annual Apple Design Awards, recognizing apps and games for their innovation, ingenuity, and technical achievement. The 2025 Apple Design Award winners are listed below, with one app and one game selected per category: Delight and Fun - CapWords (App) and Balatro (Game) Innovation - Play (App) and PBJ -...

Top Rated Comments

16 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
16 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)
16 months ago
Next headline: "Apple CEO Tim Cook Donating $1 Million to Indonesian President's Fund"
Score: 22 Votes (Like | Disagree)
wbeasley Avatar
16 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)
16 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
16 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)