Indonesia banned the latest iPhone 16 in October last year because Apple did not meet local manufacturing rules.
To resolve the issue, Apple has now committed to investing $1 billion in Indonesia.
While Apple and the Indonesian government have reached an understanding, the agreement is still not final.
After nearly five months of restrictions, Apple is set to bring back the iPhone 16 to Indonesia. The country banned the latest iPhone 16 in October last year because Apple did not meet local manufacturing rules. Now, the issue seems to be resolved after Apple reached an agreement with the Indonesian government.
Why was the iPhone 16 banned in Indonesia?
In October 2024, Indonesia stopped Apple from selling the iPhone 16 in the country due to strict domestic manufacturing regulations. These rules require tech companies to source at least 40 percent of a device’s components locally or partner with local manufacturers.
Apple had already invested 1.48 trillion rupiah in Indonesia, but this was not enough. The company was still 230 billion rupiah short of the required 1.71 trillion rupiah needed to obtain the TKDN (Domestic Component Level) certification.
Also read: iPhone 17 Pro price in India, design, camera, and all other leaks
Apple’s $1 billion investment clears the way
To resolve the issue, Apple has now committed to investing $1 billion in Indonesia. According to Bloomberg, this investment will go towards building a manufacturing plant for AirTags on Batam Island and funding training programs to develop local talent in research and development.
However, Apple has not confirmed any plans to manufacture iPhones in Indonesia. The government initially wanted Apple to set up local iPhone production, but the company has chosen a different path to meet the country’s requirements.
Also read: iPhone 15 Pro Max price drops by over Rs 17,000: How this deal works
While Apple and the Indonesian government have reached an understanding, the agreement is still not final, according to Bloomberg. A formal announcement is expected soon. Once the deal is officially signed, the Ministry of Industry will issue the necessary permits, allowing Apple to resume sales.
Also read: iPhone 17 Pro and iPhone 17 Pro Max: Expected price in India, display, design, camera, and more
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Ayushi Jain
Tech news writer by day, BGMI player by night. Combining my passion for tech and gaming to bring you the latest in both worlds. View Full Profile
