Will the iPhone 16 be sold in Indonesia? Apple sends top brass to difficult negotiations
You may or may not have heard about it, but there's a place on Earth where 280 million people live and the iPhone 16 isn't sold – yup, that's Indonesia.
Now, Indonesia's industry ministry is supposed to talk to Apple representatives – with the topic of discussion being Apple's investment in Indonesia, of course. That's the prerequisite for the Cupertino giant to be allowed to sell the iPhone 16 in the Asian country, Reuters reports.
At the end of 2024, Indonesia banned sales of Apple's iPhone 16 for failing to meet the requirement that at least 40% of components in smartphones sold domestically must be locally produced.
Apple, which does not currently have manufacturing facilities in Indonesia (again, a huge market potential with the country's 280 million people) has operated application developer academies in the country since 2018. However, to comply with Indonesia's local content mandate, the company is required to commit to new investments every three years. Apple’s previous commitment, valued at $10 million, concluded in 2023, necessitating a new agreement for the 2024-2026 period.
Indonesian officials state that the regulations are designed to ensure a level playing field for investors within the country. While consumers can purchase restricted Pixel and iPhone models abroad (yup, the Pixel 9 is also barred from being sold in Indonesia) and bring them into Indonesia after paying the necessary taxes, the government is considering measures to deactivate phones imported through unofficial channels.
Tourists visiting Indonesia, however, can freely bring their devices without any restrictions, so travelers planning an exotic getaway need not worry about compliance issues.
Now, Indonesia's industry ministry is supposed to talk to Apple representatives – with the topic of discussion being Apple's investment in Indonesia, of course. That's the prerequisite for the Cupertino giant to be allowed to sell the iPhone 16 in the Asian country, Reuters reports.
Apple's top brass will come to the Industry Ministry to negotiate the outstanding investment commitment and Apple's proposal.
– Industry Ministry spokesperson Febri Hendri, January 2025.
At the end of 2024, Indonesia banned sales of Apple's iPhone 16 for failing to meet the requirement that at least 40% of components in smartphones sold domestically must be locally produced.
Apple, which does not currently have manufacturing facilities in Indonesia (again, a huge market potential with the country's 280 million people) has operated application developer academies in the country since 2018. However, to comply with Indonesia's local content mandate, the company is required to commit to new investments every three years. Apple’s previous commitment, valued at $10 million, concluded in 2023, necessitating a new agreement for the 2024-2026 period.
Indonesia has announced that Apple plans to invest $1 billion in a manufacturing plant to produce components for smartphones and other products, although the specifics of the agreement are still being finalized.
Indonesian officials state that the regulations are designed to ensure a level playing field for investors within the country. While consumers can purchase restricted Pixel and iPhone models abroad (yup, the Pixel 9 is also barred from being sold in Indonesia) and bring them into Indonesia after paying the necessary taxes, the government is considering measures to deactivate phones imported through unofficial channels.
Things that are NOT allowed: