According to the latest report, the Indonesian government has won the battle when Apple considered manufacturing iPhones here.
It has been four months since Indonesia banned the sale of the iPhone 16 generation and asked Apple to increase investment. It is re
ported that the company is in talks with suppliers about local iPhone production.
Indonesia banned the sale of the iPhone 16 in October 2024, shortly after its launch, b
ecause Apple failed to meet its investment commitments in the country, a commitment that had previously exempted it from strict import requirements.
iPhone 16.
iPhone 16.
A series of Apple proposals to invest directly and set up additional development centers have been rejected by the Indonesian gover
negotiating with suppliers about the possibility of producing iPhones in Indonesia. If this news is accurate, this is a big win fo
r Indonesia. This news also comes after the news that Huawei will manufacture smartphones in this country.
It remains unclear whether Apple can avoid the ban by fulfilling its initial commitment to invest about $110 million in the country.
Indonesia has imposed quota requirements - forcing companies to locally source 35-40% of components for devices like smartphones.
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Apple has no manufacturing suppliers in Indonesia. Tim Cook had promised in A
pril 2024 to consider local production. Indonesia waited until October 2024 and then banned the sale of the new iPhone 16 series.
iPhone 16 Series.
iPhone 16 Series.
Since then, Apple has made increasingly large offers to the country, starting with a meager $10 million. After a $100 million offer was r
ejected, Apple proposed a $1 billion investment, which was still rejected.
The investment will see Apple move some of its production to the country's Batam Island to produce AirTags. However, Indonesia's Industry Minister Agus Gumiwang Kartasasmita said this would not affect the iPhone 16 ban "because the factory has no direct connection to iPhone components."
In late January 2025, Indonesian Investment Minister Rosan Roeslani announced that the issue of the iPhone 16 ban would be resolved "within a week or two." However, three weeks later, there has been no official announcement from Apple or Indonesia.
Creating the manufacturing facilities and associated supply chains to comply with the 35-40% quota would be costly and also take a considerable amount of time.
Apple will need to make a production commitment for the iPhone 16 ban to be lifted immediately. Before the ban, the "Apple" was predicted to sell only 2.9 million iPhones in Indonesia in 2024.
