Indonesia: iPhone 16 ban finally lifted
After months of tug-of-war, Apple and the government in Jakarta have agreed that Apple can invest more money and sell the iPhone 16.
Jakarta in Indonesia: Difficult negotiations for Apple.
(Image: Photogeratphy/Shutterstock.com)
At last it felt like a never-ending story: Apple has finally managed to reach an agreement with the Indonesian government in the conflict over production sites and investments. This was reported by the business news agency Bloomberg. Apple had been banned from selling the iPhone 16 (all four models, plus the new 16e model from this week) for a total of five months. This had been used as leverage by the authorities in Jakarta to ensure that the US company kept its promises to invest money in Indonesian parts (or contracted manufacturers). Apple had previously failed to invest a relatively moderate amount in the country, which had escalated the dispute. Meanwhile, one billion US dollars in investment funds had been offered or demanded.
Potentially huge market for Apple
The Bloomberg report now states that the billion in question will flow. A memorandum of agreement (MoA) is to be signed in the coming days, according to informed sources. The responsible Ministry of Industry will approve the sale of the iPhone 16 "as soon as possible".
The country is home to almost 280 million people and is the largest Islamic country in the world. A large proportion of the population (half of the population under 44 years of age) is still very young and interested in technology, meaning that the presidential republic could become Apple's third most important sales market in Asia alongside China and India.
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Money for production, research and training
Among other things, the billion is to flow into factories that produce accessories such as AirTags. The government had actually demanded that the iPhone – or its components – should also be produced locally. However, it is still unclear whether this will happen. Apple initially only wanted to invest 95 million dollars in Indonesia, but then underinvested. There was also a decision that Apple should pay a fine of 10 million dollars, which, according to the Ministry of Industry, has now been paid.
Apple is also to set up training centers for local employees and, if possible, conduct research and development in the country. Bloomberg writes that more details will be communicated at an upcoming press event. However, it is not entirely clear whether the MoA and a deal will actually be reached – In the past, it looked like the problem would be resolved for Apple, but then there were renewed demands from the government.
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