Apple’s $1b commitment fails to lift iPhone 16 ban in Indonesia

Indonesia has maintained its ban on iPhone 16 sales, even after Apple's commitment to invest US$1 billion in the country.

The decision stems from a standoff over local content requirements, with the government enforcing regulations mandating that 40% of phone components must be sourced domestically as it looks to boost investments from giant tech companies.

The restriction, imposed in October, remains in effect despite Apple's plans to establish an AirTag factory on Batam Island. The facility aims to supply 65% of the global AirTag demand.

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However, Indonesian Industry Minister Agus Gumiwang Kartasasmita emphasised that the investment does not address the core compliance issue. AirTags are classified as accessories rather than phone components, failing to satisfy the local sourcing rules necessary for iPhone 16 approval.

In November, Apple offered an additional US$100 million investment to resolve the impasse, but the proposal was declined. The government has since presented Apple with a counterproposal, urging the company to act promptly to lift the sales ban.

While iPhone 16 devices can be imported for personal use, commercial sales remain prohibited. Approximately 11,000 units are estimated to have entered Indonesia between August and November 2024.

Apart from iPhone 16, Indonesia has imposed a similar restriction on the Google Pixel smartphones for the same reason over domestic content requirements.

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