Apple Nears $1 Billion Deal to Lift Indonesia’s iPhone 16 Ban

The investment plan includes local manufacturing facilities and expanded developer programs to meet domestic content regulations.

Indonesia banned iPhone 16 sales in October 2024, citing Apple’s failure to meet the 40% domestic content requirement for smartphones.
Apple has proposed a $1 billion investment, including an AirTag production plant on Batam island and a facility in Bandung for accessories manufacturing.
The Batam AirTag plant is expected to employ 1,000 workers initially and produce 20% of global AirTag supply, leveraging the location’s free-trade zone benefits.
Indonesian President Prabowo Subianto has endorsed the plan and directed his Economic Affairs Ministry to finalize the agreement, though no timeline has been announced for lifting the ban.
This deal highlights Indonesia's strategy to attract foreign investment and Apple's broader efforts to diversify its manufacturing footprint beyond China.