This development follows an agreement in which Apple has committed to a $1 billion investment in the country, despite not establishing formal plans for local iPhone manufacturing.
The ban, instituted in October 2024, stemmed from Apple's non-compliance with Indonesia's requirement that 40% of smartphone components be locally sourced. To address this, Apple has pledged to build two facilities: an accessory production plant in Bandung, West Java, and an AirTag manufacturing unit in Batam, involving a $150 million investment with local suppliers.
Additionally, Apple plans to enhance local talent by providing research and development training, enabling Indonesians to develop software and design products. While these initiatives stop short of establishing iPhone manufacturing in Indonesia, they signify a substantial commitment to the country's technological growth.
The formal lifting of the ban is anticipated soon, pending the issuance of the necessary local content certificate by Indonesia's Ministry for Industry. This move is expected to bolster Apple's presence in the Indonesian market, which boasts a population of approximately 280 million people.
This agreement underscores Indonesia's strategy to attract significant tech investments, aiming to enhance its local manufacturing capabilities and technological expertise. However, analysts caution that such local content requirements could deter investor confidence and raise concerns about protectionism.
In summary, while Apple has not committed to local iPhone production, its substantial investment and development plans have facilitated the lifting of the iPhone 16 sales ban in Indonesia, marking a pivotal moment in the tech giant's expansion within Southeast Asia.