Apple to be able to sell iPhone 16 in Indonesia again

Indonesia has reached an agreement with Apple that includes an investment from the US group and could end a ban on iPhone 16 sales in the archipelago, a minister was quoted as saying by local media on Wednesday.

At the end of October, Jakarta decided to ban the marketing of the iPhone 16, accusing the American giant of not investing enough in the first economy of Southeast Asia.

According to Jakarta, the American electronics group did not comply with the regulation according to which 40% of its phones must be manufactured using parts from Indonesia.

Industry Minister Agus Gumiwang Kartasasmita announced on Wednesday that a memorandum of understanding had been signed between his ministry and the US group, according to local media.

Under the agreement, Apple will build two factories. The first, located in Bandung (West Java province), will produce accessories. The second in Batam (Riau Islands, west), for which 150 million dollars (142 million euros) will be invested, will be dedicated to the production of Airtags via local suppliers, explained the minister.

The memorandum of understanding allows the ban on the sale of the iPhone 16 to be lifted under certain conditions, local media added.

A government source confirmed to AFP on Tuesday that an agreement on the conditions for lifting the ban on sales of the iPhone 16 had been reached, without providing further details.

Contacted by AFP, neither Apple Indonesia, nor the Indonesian Ministry of Industry or the Ministry of Investment responded immediately.

In late November, Indonesia rejected a proposal from Apple to invest $100 million (€96 million) in the country to lift the ban on the iPhone 16, saying it did not provide the fairness demanded by the government.

In early January, Jakarta maintained the sales ban despite the American group's commitment to invest $1 billion in the country after a deadlock in negotiations, citing the company's inability to meet domestic market demands.

Indonesia also banned the sale of Google Pixel phones in early November for the same reason, saying the tech giant failed to meet requirements to source 40 percent of its parts from Indonesia.

Last year, Apple CEO Tim Cook visited Indonesia as the tech giant explored ways to invest there and diversify its supply chains away from China.