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2mo ago

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.

Apple iPhone 16 smartphones are displayed at a store in London, Britain, October 6, 2024. REUTERS/Hollie Adams/File Photo
Apple has worked out a way to avoid a sales ban in Indonesia after it signed an agreement for investment in the country.
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Vendors wait for customers at a mobile phone shopping centre in Jakarta

Overview

  • 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.