Apple Is Inching Closer Towards Lifting The iPhone 16 Sales Ban In Indonesia, As The Country’s President has Approved The $1 Billion Investment Amount

The Indonesian government had previously rejected Apple’s investment amount of $10 million and $100 million, and stated that the iPhone 16 sales ban will not be lifted until that figure has some additional zeros in it. Sure enough, the Cupertino giant agreed to inject a whopping $1 billion into the region, with President Prabowo having approved the amount, according to the latest report.

People familiar with the matter have said that Apple’s $1 billion investment amount will include an AirTag factory in Batam

During a briefing that happened during the weekend, Bloomberg reports that President Prabowo was provided information related to the iPhone 16 sales ban. The Indonesian government prevented all four models from being sold in the country until Apple complied with the domestic content requirements for smartphones and tablets. Sure enough, the California-based titan agreed to the terms and will make the necessary arrangements to ensure that it can resume iPhone 16 sales.

Previously, Investment Minister Rosan Roeslani had publicly stated that he expected the $1 billion investment amount from Apple within a week, a figure that is 10 times higher than the $100 million the company agreed to provide earlier. At the time, it was not mentioned if the iPhone 16 sales ban would remain in place had the $1 billion investment not arrived during the allotted time, but it is unlikely that the Indonesian government would let an opportunity of this magnitude slip.

As part of Apple’s $1 billion investment, an AirTag factory will be set up in Batam, but the paywalled report does not mention if additional product lines will be mass produced in the region. Based on 2023’s sales figure, Apple shipped around 2.9 million iPhones in the country, which is not an earth-shattering figure, but investing in Indonesia could serve a deeper purpose.

With the Trump administration breathing down on China’s neck, it has become Apple’s priority to set up its manufacturing and assembling bases in different parts of the world so these trade conflicts do not disrupt its supply chain. Indonesia appears to have a solid operating base, and Apple can take advantage of the affordable labor to reduce its dependency on China.

News Source: Bloomberg