iPhone 16 may lift sales ban in Indonesia

Indonesian President Prabowo Subianto approved the government to accept a $1 billion investment from Apple, and is about to lift the country’s ban on iPhone 16 sales, according to people familiar with the matter.

People familiar with the matter said that Prabowo discussed the “tug-of-war” between the Indonesian government and Apple at a meeting over the weekend. He listened to a report on Apple’s proposal and welcomed Apple’s commitment to invest $1 billion.

Earlier, the Indonesian government announced a ban on the sale of iPhone 16 series phones in Indonesia because Apple failed to meet the requirements of using locally produced parts. Indonesia stipulates that smartphones sold in its country must contain at least 40% of locally manufactured parts.

Two weeks ago, Indonesia’s Minister of Investment revealed that the government had reached an agreement with Apple. According to people familiar with the matter, Prabowo approved the government’s acceptance of Apple’s proposal at the meeting and urged the cabinet to try to obtain more investment in the future.

One of Apple’s suppliers will build a factory in Batam, Indonesia, to produce the item tracker “AirTag”. The factory is expected to initially employ about 1,000 workers and will eventually produce 20% of the world’s AirTags.

Batam is one of the special economic zones (known as “free trade zones” before 2016) established by the Indonesian government. It is only about a 45-minute ferry ride from Singapore, and all imported goods arriving in Batam are not taxed unless the items are distributed to other parts of Indonesia.

However, some people familiar with the matter said that the Indonesian government has not yet provided Apple with a timetable for the iPhone 16 to be approved for sale, which also means that there is a possibility of a reversal of the situation.