Indonesia Maintains iPhone 16 Ban Despite Apple’s $1 Billion AirTag Factory Deal

Apple's investment in an AirTag manufacturing facility fails to meet Indonesia's local content rules for smartphones, leaving iPhone 16 sales prohibited.

Indonesia requires smartphones sold in the country to include at least 35-40% locally-made components, a threshold Apple has not met with the iPhone 16.
Apple committed to a $1 billion investment to build an AirTag manufacturing facility on Batam Island, expected to supply 65% of global AirTag production starting in 2026.
The Indonesian government rejected the AirTag factory as insufficient, stating it does not count toward the local content requirements for smartphones.
Negotiations between Apple and Indonesian officials remain unresolved, with no timeline for compliance or lifting the iPhone 16 sales ban.
The ban affects Apple’s access to Indonesia’s large market of over 280 million people, while competitors like Samsung have adapted to meet local regulations.