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

iPhone 17 Pro Blue Feature Tighter Crop

iPhone 17: What's New With the Cameras

Friday May 2, 2025 3:52 pm PDT by
We've still got months to go before the new iPhone 17 models come out, but a combination of dummy models and leaks have given us some insight into what we can expect in terms of camera changes. Apple is adding new camera features, and changing the design of the camera bump for some models. You might be skeptical of dummy models, but over the years, they've proven to be a highly accurate...
iphone 17 air iphone 16 pro

iPhone 17 Air USB-C Port May Have This Unusual Design Quirk

Wednesday April 30, 2025 3:59 am PDT by
Apple is preparing to launch a dramatically thinner iPhone this September, and if recent leaks are anything to go by, the so-called iPhone 17 Air could boast one of the most radical design shifts in recent years. iPhone 17 Air dummy model alongside iPhone 16 Pro (credit: AppleTrack) At just 5.5mm thick (excluding a slightly raised camera bump), the 6.6-inch iPhone 17 Air is expected to become ...
AirPods Pro 3 Mock Feature

AirPods Pro 3 Just Months Away – Here's What We Know

Tuesday April 29, 2025 1:30 am PDT by
Despite being more than two years old, Apple's AirPods Pro 2 still dominate the premium wireless‑earbud space, thanks to a potent mix of top‑tier audio, class‑leading noise cancellation, and Apple's habit of delivering major new features through software updates. With AirPods Pro 3 widely expected to arrive in 2025, prospective buyers now face a familiar dilemma: snap up the proven...
iOS App Store General Feature JoeBlue

Epic Games Wins Major Victory as Apple is Ordered to Comply With App Store Anti-Steering Injunction [Updated]

Wednesday April 30, 2025 4:01 pm PDT by
In a victory for Epic Games, Apple was today found to be in violation of a 2021 injunction that required it to allow developers to direct customers to third-party purchase options on the web using in-app links. Judge Yvonne Gonzalez Rogers, who has been handling the Apple vs. Epic Games dispute for the last five years, said that Apple is in "willful violation" of the injunction she issued to ...
General Spotify Feature

Spotify Submits iOS App Update With Out-of-App Purchase Options

Thursday May 1, 2025 3:37 pm PDT by
Spotify today submitted an app update to Apple that will include information on Spotify plan costs and options to subscribe through weblinks without using the in-app purchase system. Spotify will not need to pay a fee to Apple when customers subscribe to the service using alternate payment methods in the Spotify app. In a blog post announcing the changes, Spotify said that yesterday's ruling ...
iphone 16 pro ghost hand

iPhone 18 Rumors: What to Expect From Apple Next Year

Friday May 2, 2025 3:01 am PDT by
Apple's is continually working with suppliers on successive iPhone models simultaneously, which is why we often get rumored features so far ahead of launch. The iPhone 18 series is no different, and we already have a picture forming of what to expect from Apple's 2026 smartphone lineup. If you're skipping this year's upcoming iPhone 17 series, or just plain curious about Apple's plans...
iphone 16 display

iPhone 17's Scratch Resistant Anti-Reflective Display Coating Canceled

Monday April 28, 2025 12:48 pm PDT by
Apple may have canceled the super scratch resistant anti-reflective display coating that it planned to use for the iPhone 17 Pro models, according to a source with reliable information that spoke to MacRumors. Last spring, Weibo leaker Instant Digital suggested Apple was working on a new anti-reflective display layer that was more scratch resistant than the Ceramic Shield. We haven't heard...
iOS 19

Apple Already Testing iOS 19.4 After Delaying Personalized Siri Features

Thursday May 1, 2025 9:03 am PDT by
A subset of Apple's software engineers started internal development of iOS 19.4 last month, according to the MacRumors visitor logs. iOS 19.4 is expected to be released in March or April next year, so the software update is still nearly a year away. However, Apple develops both "Fall" and "Spring" versions of iOS each year, with our website's analytics logs indicating that both iOS 19.0 and...

Top Rated Comments

macmac30 Avatar
16 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
16 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
16 weeks ago
Next headline: "Apple CEO Tim Cook Donating $1 Million to Indonesian President's Fund"
Score: 22 Votes (Like | Disagree)
wbeasley Avatar
16 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
16 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
16 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)