Indonesia is on the verge of resolving a significant dispute with Apple Inc. that led to the ban on the sale of iPhone 16 in the country. This potential resolution centers around a new investment plan that Apple is expected to present, which could meet the country’s requirements for locally-produced smartphone components. The news, confirmed by Indonesia’s Investment Minister Rosan Roeslani, has brought hope that the ban, imposed last year, will be lifted in the coming weeks.
The controversy began in 2024 when Apple failed to meet Indonesia’s regulatory demand for smartphones sold in the country to contain at least 40% locally-made components. The Indonesian government has stringent rules in place to boost the domestic manufacturing sector, particularly in the technology industry. In an attempt to bolster local production, Apple’s inability to comply with these regulations led to the suspension of iPhone 16 sales.
According to Roeslani, negotiations between Indonesia and Apple have progressed to a point where an agreement seems imminent. Speaking from the World Economic Forum in Davos, Switzerland, Roeslani expressed optimism, stating that “hopefully within one or two weeks, this issue can be resolved.” Apple has reportedly been in talks with Indonesian authorities about setting up a new investment plan that would see the company increase its local production efforts, particularly through partnerships with domestic manufacturers and suppliers.
This investment could involve Apple building or expanding local assembly plants, increasing the percentage of components sourced from within Indonesia, or even establishing more robust research and development operations in the country. The deal would likely result in Apple’s compliance with the country’s laws and ultimately enable the tech giant to resume selling the iPhone 16 in the Indonesian market.
The potential lifting of the ban is crucial for both Apple and Indonesia. For Apple, Indonesia represents one of Southeast Asia’s largest and fastest-growing markets, and the country’s ban on iPhone 16 sales has undoubtedly caused disruptions in the brand’s ability to tap into that market. On the other hand, for Indonesia, the deal aligns with its broader economic goals of encouraging foreign investment and fostering a stronger local manufacturing sector.
As discussions continue, the next few weeks could prove pivotal in determining whether Apple and Indonesia can reach an agreement that benefits both sides. If successful, this could set a precedent for future negotiations between multinational companies and emerging markets with strict local manufacturing requirements.
