The iPhone 16 is finally set to launch in the world’s fourth-most-populous country

In fall 2024, Indonesia banned iPhone 16 series sales. Now, after months of negotiations, the country and Apple have reached an agreement to lift the ban.

This resolution comes after a five-month standoff, with Apple committing to invest $1 billion in Indonesia. The Ministry of Industry, which enforced the ban, is expected to sign a memorandum with Apple this week. A press conference is also planned, and the ministry aims to issue the necessary permits to resume sales as soon as possible.

The dispute began in October when the iPhone 16 failed to meet Indonesia’s requirement that 40% of its components be locally produced.

However, data from the Centralized Equipment Identity Register (CEIR) system revealed that thousands of iPhone 16 units had already entered the country. These arrived through two main channels: personal luggage, where travelers can bring up to two units for personal use, and diplomatic shipments overseen by the Ministry of Communication and Information Technology.

As part of the agreement, Apple will invest in training local talent in research and development, enabling Indonesian engineers to develop similar software and design their own technologies. This aligns with the government’s push for Apple to establish R&D facilities in the country.

The investment will fund new programs separate from existing Apple academies in Indonesia. However, Apple has no current plans to manufacture iPhones locally.

While both parties have agreed to the terms, last-minute changes are still possible, as Indonesia has previously reversed similar decisions. So far, neither Apple nor the Ministry of Industry has issued an official statement.

Despite a delay in January, negotiations had been progressing. Last week, Industry Minister Agus Gumiwang Kartasasmita confirmed that Apple had settled a $10 million debt for failing to comply with local regulations between 2020 and 2023.

For Apple, gaining access to Indonesia’s massive consumer market is crucial, especially as sales in China decline. While Apple is not among Indonesia’s top five smartphone brands, the country’s nearly 280 million people-many of them young and tech-savvy-present a valuable growth opportunity.

Apple’s $1 billion investment includes a new production plant on Batam Island for AirTags, operated by supplier Luxshare Precision Industry Co., handling 20% of global AirTag production. Additionally, a new factory in Bandung will manufacture accessories, and Apple will continue funding academies to train students in technical skills like coding.