Apple may resume iPhone 16 sales in Indonesia

Apple is close to concluding an investment deal with the Indonesian authorities that will allow it to resume sales of the iPhone 16 in the country. According to Bloomberg, the company has proposed an investment of $1 billion, including the construction of an AirTag manufacturing plant.

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As a reminder, Indonesia banned the sale of the iPhone 16 in October 2024 due to non-compliance with the local production requirements, which should be 35% of the domestic content for smartphones and tablets. Apple's previous offers of $10 million and $100 million were rejected by the government.

Apple promised $109 million, but invested only $95 million. To comply with local laws, the company needs to either increase its investment or expand production of accessories and components in the country. Failure to do so could result in a long-term ban on the iPhone 16 and Apple Watch 10 in Indonesia.

Indonesian Investment Minister Rosan Roslani said in an interview with Bloomberg during the World Economic Forum in Davos: "I strongly believe that this issue will be resolved very soon. I hope we will reach an agreement within one or two weeks."

According to the minister, the parties have found a common solution to the difference in approaches to calculating the share of local production, which can help bring the iPhone 16 back to the market as soon as possible.

Indonesia is an important market for Apple with a population of 280 million people and more than 354 million active mobile devices. Despite the absence of Apple's manufacturing facilities in the country, the company has been supporting educational programmes for developers since 2018.

Source: Bloomberg