Apple and Indonesia Reach Deal to End iPhone 16 Ban

Apple and Indonesia have agreed on terms to lift the country's five-month ban on iPhone 16 sales, according to people familiar with the matter who spoke to Bloomberg. The deal concludes a battle that began in October, when Indonesia refused to issue permits for Apple's flagship iPhone lineup over Apple's failure to comply with domestic manufacturing requirements.

iPhone 16 Apple Store Levels
Under the agreement, Apple will invest $1 billion in Indonesia, a significant increase from its previous commitments of $10 million and $100 million that were rejected by the government. The deal is expected to be formalized through a memorandum of agreement to be signed as early as this week, with the Ministry for Industry issuing permits allowing iPhone 16 sales "as soon as possible."

Beyond the monetary investment, Apple has reportedly committed to training local talent in research and development, so that Indonesians can develop software and design their own products. The pledge addresses one of the government's key demands for Apple to establish R&D facilities in the country.

The agreement also includes plans for a manufacturing plant on Batam island that will produce AirTags, Apple's device tracking accessories. This facility will be operated by Apple supplier Luxshare Precision Industry, and is expected to eventually account for 20% of global AirTag production.

Another manufacturing facility is planned for Bandung, about three hours from Jakarta, which will produce other types of accessories. Part of the investment will also fund Apple academies to equip Indonesian students with tech skills like coding.

Despite the substantial concessions, Bloomberg's sources indicated that Apple has no immediate plans to manufacture iPhones in Indonesia.

The deal is a victory for Indonesian President Prabowo Subianto, who directed his ministers to accept Apple's $1 billion investment offer. However, the Ministry of Industry unexpectedly upheld the ban last month while seeking better terms, which have apparently now been agreed.

Indonesia's hardball approach seems to have paid off, securing significant investment from a major foreign company and supporting the government's goal of boosting local manufacturing rather than simply using the nation as a sales market.

For Apple, regaining access to Indonesia's market of 278 million people — over half of whom are under 44 and tech-savvy — comes at a crucial time as its sales in China have slowed. Apple may not be among the top five smartphone brands in Indonesia, but the market offers the company a lucrative growth opportunity.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Related Roundups: iPhone 16, iPhone 16 Pro

Popular Stories

iPhone 17 Pro 3 4ths Perspective Aluminum Camera Module 1

iPhone 17 Pro Launching Later This Year With These 12 New Features

Sunday April 13, 2025 7:52 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of April 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone ...
Apple 2025 Thumb 1

10 Products Still Coming From Apple in 2025

Friday April 11, 2025 4:14 pm PDT by
Apple may have updated several iPads and Macs late last year and early this year, but there are still multiple new devices that we're looking forward to seeing in 2025. Most will come in September or October, but there could be a few surprises before then. We've rounded up a list of everything that we're still waiting to see from Apple in 2025. iPhone 17, 17 Air, and 17 Pro - We get...
Beyond iPhone 13 Better Triad

Apple's 20th Anniversary iPhone May Finally Go All Screen

Tuesday April 15, 2025 6:31 am PDT by
Apple is preparing a "bold" new iPhone Pro model for the iPhone's 20th anniversary in 2027, according to Bloomberg's Mark Gurman. As part of what's being described as a "major shake-up," Apple is said to be developing a design that makes more extensive use of glass – and this could point directly to the display itself. Here's the case for Apple releasing a truly all-screen iPhone with no...
iOS 19 Roundup Feature

iOS 19 Will Add These New Features to Your iPhone

Tuesday April 15, 2025 7:37 am PDT by
The first iOS 19 beta is less than two months away, and there are already a handful of new features that are expected with the update. Apple should release the first iOS 19 beta to developers immediately following the WWDC 2025 keynote, which is scheduled for Monday, June 9. Following beta testing, the update should be released to the general public in September. Below, we recap the key...
Foldable iPhone 2023 Feature Homescreen

Foldable iPhone Resolutions Leak With Under-Screen Camera Tipped

Monday April 14, 2025 3:12 am PDT by
Apple's upcoming foldable iPhone (or "iPhone Fold") will feature two screens as part of its book-style design, and a Chinese leaker claims to know the resolutions for both of them. According to the Weibo-based account Digital Chat Station, the inner display, which is approximately 7.76 inches, will use a 2,713 x 1,920 resolution and feature "under-screen camera technology." Meanwhile, the...
iPad Pro iPadOS

iPadOS 19 Will Be 'More Like macOS' in Three Ways

Sunday April 13, 2025 6:43 am PDT by
A common complaint about the iPad Pro is that the iPadOS software platform fails to fully take advantage of the device's powerful hardware. That could soon change. Bloomberg's Mark Gurman today said that iPadOS 19 will be "more like macOS." Gurman said that iPadOS 19 will be "more like a Mac" in three ways:Improved productivity Improved multitasking Improved app window management...
Apple Vision Pro with battery Feature Blue Magenta

Vision Pro 2 Rumored to Have Two Key Advantages Over Current Model

Sunday April 13, 2025 7:15 am PDT by
Apple is working on a new version of the Vision Pro with two key advantages over the current model, according to Bloomberg's Mark Gurman. Specifically, in his Power On newsletter today, Gurman said Apple is developing a new headset that is both lighter and less expensive than the current Vision Pro, which starts at $3,499 in the U.S. and weighs up to 1.5 pounds. Gurman said Apple is also...
Apple Bristol Current

An Apple Store in the UK is Permanently Closing Later This Year

Monday April 14, 2025 7:33 am PDT by
Apple has confirmed that it will be permanently closing its retail store in the heart of Bristol, England, and there is no replacement in sight. Apple Bristol in 2023 Apple Bristol will be closing its doors on Saturday, August 9, due to redevelopment plans at the Cabot Circus Shopping Centre, and the adjacent Bristol Shopping Quarter. According to news reports, and a building application, the ...
M6 MacBook Pro Feature 1

Waiting for the Perfect MacBook Pro? 2026 Might Be the Year

Thursday April 10, 2025 4:19 am PDT by
Apple in October 2024 overhauled its 14-inch and 16-inch MacBook Pro models, adding M4, M4 Pro, and M4 Max chips, Thunderbolt 5 ports on higher-end models, display changes, and more. That's quite a lot of updates in one go, but if you think this means a further major refresh for the MacBook Pro is now several years away, think again. Bloomberg's Mark Gurman has said he expects only a small...

Top Rated Comments

senttoschool Avatar
7 weeks ago
It's like how Trump does business.
Score: 7 Votes (Like | Disagree)
cicalinarrot Avatar
7 weeks ago
I'm not sure why most people on this site seems to assume that what's good for Apple is good for the world.

There seems to be a tendency, especially in the US, to self-identify with corporations, as if their freedom from governments were people's freedom.
In most situations, it seems to be the exact opposite: it's completely private interests (in this case foreign interests, if you can put yourself in Indonesians' shoes for a second) Vs. something that should represent the whole country (either it does in a good or bad way, it's surely more on Indonesians' side than Apple).
Score: 5 Votes (Like | Disagree)
Skyscraperfan Avatar
7 weeks ago
The problem with those huge corporations is the they can send bills from one local branch to another one to save taxes.

Starbucks for example charges their local branches huge sums of money for using the Starbucks name and logo for example, although those branches are 100% owned by their mother company. That costs can be deducted as an expense in a high tax company like Germany. I wonder if Apple does the same trick.

All those companies ask for is that the net revenue that in generated locally is also taxed locally. Apple has a huge profit margin and it should not be able to shift taxes from high tax countries to low tax countries where they did not occur at all or even to countries like the UAE who do not have any corporate taxes.

Indonesia is a very poor country with huge problems. I spent six days in Jakarta last year. It has a few very modern and wealthy districts in the city center, but most of the rest of the city is slums. I am glad they are tough on giants like Apple.
Score: 4 Votes (Like | Disagree)
wanha Avatar
7 weeks ago
I'm generally not a fan of countries doing these type of "negotiations", but I'm also aware that large multinational corporations are designed to pump as much profit out of economies as possible, leaving those economies withering and less able to deal with whatever problems arise, because they capture so little of the value.

This is not just a tech thing, but the way in which more and more industries operate, and it's a problem.
Score: 3 Votes (Like | Disagree)
twintin Avatar
7 weeks ago
Will be tough time for Apple to keep up if other countries follow with similar demands (US, Indonesia, India, who else will follow). :)
Score: 3 Votes (Like | Disagree)
StuBeck Avatar
7 weeks ago

They must have really wanted that market, when they only missed the original investment requirement by like a million dollars, now they have to pay 1000x as much.
Sets a very dangerous precedent, as we know Apple will pass that cost on to other markets, and other markets will start asking for the same or better investments.
With the profits Apple makes, there is no need for them to pass along the low cost of their new investment. There also are only 3 countries with a larger population than Indonesia, so I don't think there can be much concern of "better" investments being required everywhere.
Score: 1 Votes (Like | Disagree)