Apple and Indonesia Reach Deal to End iPhone 16 Ban

Apple and Indonesia have agreed on terms to lift the country's five-month ban on iPhone 16 sales, according to people familiar with the matter who spoke to Bloomberg. The deal concludes a battle that began in October, when Indonesia refused to issue permits for Apple's flagship iPhone lineup over Apple's failure to comply with domestic manufacturing requirements.

iPhone 16 Apple Store Levels
Under the agreement, Apple will invest $1 billion in Indonesia, a significant increase from its previous commitments of $10 million and $100 million that were rejected by the government. The deal is expected to be formalized through a memorandum of agreement to be signed as early as this week, with the Ministry for Industry issuing permits allowing iPhone 16 sales "as soon as possible."

Beyond the monetary investment, Apple has reportedly committed to training local talent in research and development, so that Indonesians can develop software and design their own products. The pledge addresses one of the government's key demands for Apple to establish R&D facilities in the country.

The agreement also includes plans for a manufacturing plant on Batam island that will produce AirTags, Apple's device tracking accessories. This facility will be operated by Apple supplier Luxshare Precision Industry, and is expected to eventually account for 20% of global AirTag production.

Another manufacturing facility is planned for Bandung, about three hours from Jakarta, which will produce other types of accessories. Part of the investment will also fund Apple academies to equip Indonesian students with tech skills like coding.

Despite the substantial concessions, Bloomberg's sources indicated that Apple has no immediate plans to manufacture iPhones in Indonesia.

The deal is a victory for Indonesian President Prabowo Subianto, who directed his ministers to accept Apple's $1 billion investment offer. However, the Ministry of Industry unexpectedly upheld the ban last month while seeking better terms, which have apparently now been agreed.

Indonesia's hardball approach seems to have paid off, securing significant investment from a major foreign company and supporting the government's goal of boosting local manufacturing rather than simply using the nation as a sales market.

For Apple, regaining access to Indonesia's market of 278 million people — over half of whom are under 44 and tech-savvy — comes at a crucial time as its sales in China have slowed. Apple may not be among the top five smartphone brands in Indonesia, but the market offers the company a lucrative growth opportunity.

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.

Related Roundup: iPhone 16
Related Forum: iPhone

Popular Stories

apple store down feature

Here's Why the Apple Store is Going Down

Thursday November 27, 2025 1:01 pm PST by
Apple's online store is going down for a few hours on a rolling country-by-country basis right now, but do not get your hopes up for new products. Apple takes its online store down for a few hours ahead of Black Friday every year to tease/prepare for its annual gift card offer with the purchase of select products. The store already went down and came back online in Australia and New Zealand, ...
iPhone Pocket Short

iPhone Pocket is Now Completely Sold Out Worldwide

Tuesday November 25, 2025 7:16 am PST by
Apple recently teamed up with Japanese fashion brand ISSEY MIYAKE to create the iPhone Pocket, a limited-edition knitted accessory designed to carry an iPhone. However, it is now completely sold out in all countries where it was released. iPhone Pocket became available to order on Apple's online store starting Friday, November 14, in the United States, France, China, Italy, Japan, Singapore, ...
New Intel Logo

Apple and Intel Rumored to Partner on Mac Chips Again in a New Way

Friday November 28, 2025 7:33 am PST by
While all Macs are now powered by Apple's custom-designed chips, a new rumor claims that Apple may rekindle its partnership with Intel, albeit in a new and limited way. Apple supply chain analyst Ming-Chi Kuo today said Intel is expected to begin shipping Apple's lowest-end M-series chip as early as mid-2027. Kuo said Apple plans to utilize Intel's 18A process, which is the "earliest...
streaming black friday 2025

Best Black Friday Streaming Deals - Save Big on Apple TV, Disney+, Hulu, and More

Thursday November 27, 2025 1:14 pm PST by
We've been focusing on deals on physical products over the past few weeks, but Black Friday is also a great time of year to purchase a streaming membership. Some of the biggest services have great discounts for new and select returning members this week, including Apple TV, Disney+, Hulu, Paramount+, Peacock, and more. Note: MacRumors is an affiliate partner with some of these vendors. When...
iphone air camera

iPhone Air Flop Sparks Industry Retreat From Ultra-Thin Phones

Thursday November 27, 2025 3:14 am PST by
Apple's disappointing iPhone Air sales are causing major Chinese mobile vendors to scrap or freeze their own ultra-thin phone projects, according to reports coming out of Asia. Since the ‌iPhone Air‌ launched in September, there have been reports of poor sales and manufacturing cuts, while Apple's supply chain has scaled back shipments and production. Apple supplier Foxconn has...
iphone black friday gold

The Best Black Friday iPhone Deals Still Available

Friday November 28, 2025 6:24 am PST by
Cellular carriers have always offered big savings on the newest iPhone models during the holidays, and Black Friday 2025 sales have kicked off at AT&T, Verizon, T-Mobile, and more. Right now we're tracking notable offers on the iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and iPhone Air. For even more savings, keep an eye on older models during the holiday shopping season. Note: MacRumors is...
Apple Foldable Thumb

Foldable iPhone to Debut These Three Breakthrough Features

Tuesday November 25, 2025 7:09 am PST by
Apple's first foldable iPhone is expected to launch alongside the iPhone 18 Pro models in fall 2026, and it's shaping up to include three standout features that could set it apart from the competition. The book-style foldable will reportedly feature an industry-first 24-megapixel under-display camera built into the inner display, according to a recent JP Morgan equity research report. That...

Top Rated Comments

senttoschool Avatar
10 months ago
It's like how Trump does business.
Score: 7 Votes (Like | Disagree)
cicalinarrot Avatar
10 months ago
I'm not sure why most people on this site seems to assume that what's good for Apple is good for the world.

There seems to be a tendency, especially in the US, to self-identify with corporations, as if their freedom from governments were people's freedom.
In most situations, it seems to be the exact opposite: it's completely private interests (in this case foreign interests, if you can put yourself in Indonesians' shoes for a second) Vs. something that should represent the whole country (either it does in a good or bad way, it's surely more on Indonesians' side than Apple).
Score: 5 Votes (Like | Disagree)
Skyscraperfan Avatar
10 months ago
The problem with those huge corporations is the they can send bills from one local branch to another one to save taxes.

Starbucks for example charges their local branches huge sums of money for using the Starbucks name and logo for example, although those branches are 100% owned by their mother company. That costs can be deducted as an expense in a high tax company like Germany. I wonder if Apple does the same trick.

All those companies ask for is that the net revenue that in generated locally is also taxed locally. Apple has a huge profit margin and it should not be able to shift taxes from high tax countries to low tax countries where they did not occur at all or even to countries like the UAE who do not have any corporate taxes.

Indonesia is a very poor country with huge problems. I spent six days in Jakarta last year. It has a few very modern and wealthy districts in the city center, but most of the rest of the city is slums. I am glad they are tough on giants like Apple.
Score: 4 Votes (Like | Disagree)
wanha Avatar
10 months ago
I'm generally not a fan of countries doing these type of "negotiations", but I'm also aware that large multinational corporations are designed to pump as much profit out of economies as possible, leaving those economies withering and less able to deal with whatever problems arise, because they capture so little of the value.

This is not just a tech thing, but the way in which more and more industries operate, and it's a problem.
Score: 3 Votes (Like | Disagree)
twintin Avatar
10 months ago
Will be tough time for Apple to keep up if other countries follow with similar demands (US, Indonesia, India, who else will follow). :)
Score: 3 Votes (Like | Disagree)
StuBeck Avatar
10 months ago

They must have really wanted that market, when they only missed the original investment requirement by like a million dollars, now they have to pay 1000x as much.
Sets a very dangerous precedent, as we know Apple will pass that cost on to other markets, and other markets will start asking for the same or better investments.
With the profits Apple makes, there is no need for them to pass along the low cost of their new investment. There also are only 3 countries with a larger population than Indonesia, so I don't think there can be much concern of "better" investments being required everywhere.
Score: 1 Votes (Like | Disagree)