Apple is poised to resume iPhone 16 sales in Indonesia following successful negotiations with the Indonesian government, securing agreements for a new manufacturing plant and a research and development center. These deals signify a resolution to the previous sales ban imposed due to Apple’s non-compliance with local content regulations.
Indonesia’s Industry Minister, Agus Gumiwang Kartasasmita, acknowledged the complexity of the months-long discussions, emphasizing the government’s commitment to fair principles and maximizing value for the nation. The core issue revolved around obtaining a local content certificate, a prerequisite for selling handsets in Indonesia. This certificate confirms that a certain percentage of a product’s components are sourced or manufactured locally.
While the specific details of the local content agreement remain undisclosed, the broader deals represent a significant investment exceeding $300 million by Apple in the Indonesian market. Beyond the software research and development center planned near Jakarta, Apple will establish manufacturing facilities for components used in products like AirPods. This investment underscores Apple’s growing interest in Indonesia’s substantial consumer base of approximately 280 million people.
This development comes after Indonesia banned sales of the iPhone 16 last year, citing Apple’s failure to meet mandatory local content requirements for smartphones. Such regulations aim to boost domestic industries and create jobs, but critics argue they can hinder foreign investment and foster protectionist tendencies. The resolution of this impasse suggests a mutually beneficial outcome for both Apple and Indonesia.
Currently, Apple operates developer academies in Indonesia, established in 2018, but lacks manufacturing infrastructure. Typically, companies navigate Indonesia’s local content rules through collaborations with domestic partners or by sourcing components within the country. Although Minister Agus did not specify a timeline for Apple’s sales resumption, the secured agreements indicate imminent approval for the iPhone 16’s return to the Indonesian market.
According to market research from Canalys, Apple was not among the top five smartphone brands in Indonesia during the third quarter of last year. With the resolution of the local content hurdle, Apple aims to regain market share and strengthen its presence in Southeast Asia’s largest economy. The new manufacturing plant and R&D center will likely contribute to meeting local content requirements for future iPhone models as well. This strategic move positions Apple for long-term growth in a dynamic and increasingly important market.
While Apple has not officially commented on the specifics of the agreements, CNN Indonesia reported an Apple representative expressing enthusiasm for expanding investment and offering a full product range to Indonesian consumers. This renewed access to the Indonesian market presents a significant opportunity for Apple to tap into a large and growing consumer base, further solidifying its global presence.
