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After enduring a nearly five-month prohibition, Apple is on the verge of reintroducing the iPhone 16 to Indonesian consumers. The initial ban imposed in October last year arose from Apple’s failure to adhere to local manufacturing guidelines mandated by the Indonesian government. Recent developments indicate that Apple and the authorities have taken steps to resolve this matter, positioning the tech giant to once again make its latest smartphone available in Indonesia.
In October 2024, Indonesian authorities prohibited Apple from selling the iPhone 16 as part of their stringent domestic manufacturing laws. These regulations require technology firms to manufacture or source at least 40% of a device’s components from local suppliers or establish partnerships with local manufacturers to ensure a sustainable supply chain.
Despite Apple previously investing 1.48 trillion rupiah in Indonesian operations, this amount fell short of the required 1.71 trillion rupiah threshold needed for obtaining the TKDN (Domestic Component Level) certification. The shortfall of 230 billion rupiah ultimately triggered the restriction on the iPhone sales in the region.
In light of the challenges faced due to these stringent regulations, Apple has announced a commitment to invest $1 billion into various initiatives within Indonesia. Reports from Bloomberg reveal that this investment will primarily be utilized for establishing a manufacturing facility for AirTags on Batam Island, as well as for funding educational and training programs aimed at nurturing local talent in research and development.
However, it is essential to note that Apple has yet to confirm any intentions to produce iPhones within Indonesia itself. While there was an initial expectation from the Indonesian government that Apple would set up local iPhone production lines, the company has opted for a different route in its strategy to comply with local regulations.
Also read: iPhone 15 Pro Max sees a significant price reduction: How this exclusive deal works
Despite the tentative agreements made between Apple and the Indonesian government, Bloomberg indicates that the deal is still not finalized. A formal announcement is anticipated in the near future. Following the official signing of the contract, the Ministry of Industry is expected to grant the necessary permits, enabling Apple to resume its sales operations for the iPhone 16 in Indonesia.
