Indonesia Lifts iPhone 16 Ban After $1 Billion Deal with Apple

Indonesia and Apple Reach Agreement to Resume iPhone 16 Sales

Indonesia has reached an agreement with Apple Inc. (NASDAQ: AAPL) to lift the country's ban on iPhone 16 sales, ending a five-month dispute. The resolution comes after Apple committed to investing $1 billion in Indonesia, according to Bloomberg sources familiar with the matter.

Indonesia to Approve iPhone 16 Sales Permit

The Indonesian Ministry for Industry is set to sign a memorandum of agreement with Apple as early as this week, paving the way for the ministry to issue a permit allowing iPhone 16 sales. A press briefing is expected to officially announce the deal, Bloomberg reported.

Why Did Indonesia Ban iPhone 16 Sales?

The dispute began in October when Indonesia blocked iPhone 16 sales, citing Apple’s failure to comply with domestic manufacturing regulations. In response, Apple pledged a $1 billion investment to develop local talent, expand research and development initiatives, and establish accessory production facilities.

Apple to Establish AirTag Production Facility in Indonesia

As part of the agreement, Apple will set up a facility on Batam Island to produce AirTags. The plant will be operated by Apple’s supplier, Luxshare Precision Industry Co Ltd (SZ:002475), further strengthening the company's manufacturing footprint in Southeast Asia.

What This Deal Means for Indonesia and Apple

This agreement is seen as a major win for President Prabowo Subianto’s administration, as it attracts substantial foreign investment and promotes local job creation. However, Bloomberg noted that Indonesia has previously reversed similar agreements, so the deal's final execution remains subject to official confirmation.

(Sources: investing.com, reuters.com)