Indonesia to Lift iPhone 16 Ban After Apple Agrees to $1 Billion Investment

Apple will resume iPhone 16 sales in Indonesia following a deal that includes local manufacturing and research commitments.

Indonesia banned iPhone 16 sales in October 2024 due to Apple's failure to meet local content requirements mandating 40% domestically sourced components.
Apple committed to a $1 billion investment in Indonesia, including the construction of an AirTag manufacturing plant on Batam island and an accessories facility in Bandung.
The AirTag plant, operated by Apple supplier Luxshare Precision, is expected to produce 20% of global AirTag supply, with completion anticipated by early 2026.
The agreement also includes training local talent in research and development, addressing Indonesia's demand for broader innovation investment beyond existing Apple academies.
The deal grants Apple access to Indonesia's large and growing consumer market of 278 million people, a strategic move as the company diversifies supply chains and faces slowing sales in China.