Indonesia’s industry minister and Apple announced Wednesday that the two countries have reached an agreement for the tech giant to invest in Indonesia, potentially lifting the prohibition on iPhone 16 sales in the largest economy in Southeast Asia.
Due to the US tech giant’s failure to comply with requirements mandating 40 percent of phones to be built from local parts, the government in October banned the model’s promotion and sale.
According to a ministry release, Industry Minister Agus Gumiwang Kartasasmita announced on Wednesday that his ministry and Apple had virtually signed a Memorandum of Understanding.
“The Ministry of Industry has approved the investment and innovation plan by Apple from 2025 to 2028. We have also signed the MoU with Apple,” Agus said in the statement.
Apple will build two facilities — one in Bandung in West Java province to produce accessories and another in Batam worth $150 million to help produce AirTags via local suppliers, the statement said.
Agus also said Apple expressed its commitment to building a semiconductor research and development centre in Indonesia, the “first of its kind in Asia”.
The iPhone 16 sales embargo may be lifted under specific circumstances, according to the Memorandum of Understanding.
According to Agus, once the deal was signed, the process of obtaining a local content certificate to sell the iPhone 16 could start.
“We’re excited to expand our investments across Indonesia and can’t wait to bring all of Apple’s innovative products, including the iPhone 16 family, with the all new iPhone 16e, to our customers,” Apple Indonesia told AFP in a statement.
Without giving further information, a government source told AFP on Tuesday that the conditions for the ban’s lifting had been agreed upon.
In November, Jakarta turned down Apple’s $100 million investment request, claiming it did not meet the government’s “fairness” standards.
Apple eventually offered a $1 billion investment to establish an AirTag factory in the nation as a result of the bargaining impasse.
The government let iPhone 16s to be imported into Indonesia even though sales were prohibited as long as they weren’t being used for business purposes.
Due to their failure to meet the 40 percent parts standard, Google Pixel phones were also prohibited from sale in Indonesia.
Last year, Tim Cook, the CEO of Apple, traveled to Indonesia to look into ways to diversify its supply chains away from China and make investments there.
*
Email *
Website
