The Indonesian government has reached an agreement with Apple to lift the sales ban on the iPhone 16, following months of negotiations between both parties, according to a government source who spoke to the AFP agency.
This decision ends the ban imposed in October 2024 because Apple did not comply with the regulation that requires 40% of the device’s parts to be manufactured locally, a requirement aimed at encouraging investment in the country by large technology companies.
Since its imposition, the ban has caused a stagnation in the sales of this model, although it is estimated that, by the end of 2024, around 9,000 units have entered Indonesia in a non-commercial manner.
“If you don’t manufacture locally, you can’t sell here”
The Indonesian government has also imposed restrictions on other devices, including the Google Pixel, for the same reasons of non-compliance in the local supply of parts.
Throughout the negotiation process, Indonesia rejected an initial investment proposal of $100 million from Apple, arguing that it did not meet the “equity” criteria set by the government.
Subsequently, Apple offered an investment of $1 billion to build an AirTag factory in the country, which seems to have been a crucial factor in resolving the conflict.
The CEO of Apple, Tim Cook, visited Indonesia last year with the aim of exploring investment opportunities and diversifying supply chains outside of China. During his visit, Cook met with then-President Joko Widodo and his successor Prabowo Subianto, indicating the company’s interest in strengthening its presence in the Southeast Asian market.
The official announcement of the terms of the agreement reached is still awaited, as well as the response from the Indonesian authorities, which will mark a new stage in the relationship between Apple and the Indonesian government.