Apple strikes deal with Indonesia to resume iPhone 16 sales

Apple reached an agreement with the Indonesian government to end the iPhone 16 sales ban in the country. The company could sign a memorandum of agreement with the Indonesian government as early as this week.
Indonesia banned Apple from selling the iPhone 16 in October 2024 after failing to invest the committed amount.
Apple reaches an agreement with the Indonesian government
As per the local regulations, Apple was also supposed to use 40% locally sourced components on the iPhone 16 but failed to do so. This led to the company failing to gain the necessary certification.
Instead of manufacturing, Apple opened four developer academies in Indonesia to meet the local investment norms. But of the promised $108 million, the company only invested around $95 million. This led Indonesia’s Ministry of Industry to impose a ban on iPhone 16 sales.
Apple promised to invest $100 million in Indonesia. However, the government rejected the proposal. It then pledged to invest $1 billion in Indonesia last month, which would involve setting up a manufacturing facility. Surprisingly, the Ministry of Industry still stuck to the ban, seeking better investment terms.
Apparently, both parties are now on the same page, with the ministry now looking to issue a clearance certificate so iPhone 16 sales can resume as soon as possible.
Apple to make AirTags in Indonesia
Bloomberg reports Apple’s new factory in Indonesia will manufacture AirTags, with supplier Luxshare Precision running the plant. It will eventually account for 20% of the total AirTag production. As part of its investment, Apple will set up another factory in Bandung to manufacture other accessories for its devices.
Further, the company will train locals on R&D and coding through new programs instead of its existing academies. Sources claim the company will not make iPhones in the country anytime soon.
Besides this, Apple recently settled a $10 million debt for failing to comply with the local rules from 2020 to 2023.