Indonesia Sticks to iPhone 16 Sales Ban, Rejects Apple’s $1 Billion Investment Offer

Indonesia has decided to maintain its ban on the sale of the iPhone 16, despite Apple’s offer to invest $1 billion in the country.

The decision stems from Apple’s failure to meet Indonesia’s strict local manufacturing requirements, which mandate that 40 percent of a phone’s components must be sourced from within the country.

This requirement is part of the government’s efforts to boost local manufacturing and attract investments from global tech giants.

The issue first arose in October 2024 when Indonesia prohibited the sale and marketing of the iPhone 16 model, arguing that Apple did not comply with the domestic component regulations.

Apple responded by offering a $1 billion investment to establish an AirTag factory on Batam Island, which would supply 65 percent of the global AirTag production.

However, Indonesian officials clarified that AirTags, being accessories rather than phone components, did not fulfill the local parts requirement for iPhone 16.

Industry Minister Agus Gumiwang Kartasasmita stated that as of Wednesday, January 8, 2025, the government had not granted Apple the necessary certification for domestic components in the iPhone 16.

Despite Apple’s promise of investment, no agreement had been reached following a meeting between the company and Indonesian officials on January 7, 2025.

The government had also previously rejected a $100 million increase in Apple’s investment offer in November, further complicating the situation.

In response, Indonesia’s government has remained firm in its position, urging Apple to respond to a counterproposal presented during the recent talks.

The Minister emphasized that if Apple wished to resume sales of the iPhone 16 in Indonesia, they needed to comply with local requirements.

While the iPhone 16 remains banned for commercial sale, the government has allowed individuals to bring the phones into the country, provided they are not intended for resale.

It is estimated that about 9,000 iPhone 16 units have entered Indonesia through this route.

This ongoing dispute highlights the growing tension between global tech companies and governments seeking to increase local manufacturing and technology investment.

The ban also mirrors a similar restriction on Google Pixel phones, which were banned for failing to meet the 40 percent local component requirement.