Indonesia has maintained its ban on iPhone 16 sales despite Apple’s recent commitment to invest $1 billion in the country. The ban, implemented in October 2024, starts from Apple’s failure to meet Indonesia’s local content requirements for smartphones.
Indonesia mandates that smartphones sold domestically must comprise at least 35% locally-made components, with plans to increase this threshold to 40%. Apple has agreed to build a $1 billion AirTag manufacturing facility on Batam Island, near Singapore.
Indonesian Industry Minister Agus Gumiwang Kartasasmita stated that the AirTag facility does not satisfy the local content criteria for iPhones, as AirTags are considered accessories, not phone components.
Apple’s vice president of global government affairs, Nick Ammann, has held meetings with Indonesian officials to discuss investment plans and resolve the sales ban issue.
The Indonesian government has proposed that Apple establish research and development (R&D) centers to qualify for the content rule under an innovation scheme. Officials emphasize that investments must bring added value and create new jobs in Indonesia.
Indonesia, with a population of about 280 million, is a huge market for smartphone manufacturers. The ban affects not only Apple but also Google’s Pixel phones, which similarly fail to meet the local content requirements.
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