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.

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Top Rated Comments

macmac30 Avatar
12 weeks 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
12 weeks 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
12 weeks ago
Next headline: "Apple CEO Tim Cook Donating $1 Million to Indonesian President's Fund"
Score: 22 Votes (Like | Disagree)
wbeasley Avatar
12 weeks 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
12 weeks 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
12 weeks 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)