A months-long iPhone 16 ban in Indonesia finally looks set to be lifted, after Apple reportedly agreed to increase its billion dollar investment in the country. The launch of the iPhone 16e would have further added to pressure on the Cupertino company to agree a deal.
The latest report says that Apple will sign an agreement with the Indonesian government later this week, with an official lifting of the ban set to be announced immediately afterwards …
The saga of the iPhone 16 ban
Apple initially invested in Indonesia by putting $109M into a developer academy there, with a further $10M manufacturing spend. The government said that Apple had fallen short on the first promise, spending only $95M. As a result, it banned the sale and use of iPhone 16 models.
A population of around 280M and growing prosperity meant this was no small problem for Apple. The company responded by offering a ten-fold increase in its manufacturing spend in the country, from $10M to $100M.
The government said it expected more, though it didn’t name a figure at that time. However, it subsequently said it expected another ten-fold increase, to a cool billion dollars.
Even when Apple agreed to that by moving AirTag production to the country, the government still said no, insisting that iPhone components be made there.
Apple reportedly agreed to $1B+
Bloomberg reports that an agreement has now been reached, and that it will be formalized later this week.
The Ministry for Industry, which is responsible for upholding the ban, is set to sign a memorandum of agreement with Apple as soon as this week, according to people familiar with the talks, who asked not to be identified discussing private matters. A press briefing will also be held, the people said, adding the ministry intends to issue a permit allowing iPhone 16 sales as soon as possible.
Apple is said to have agreed to additional investment, over and above the full $1B.
On top of the $1 billion investment, Apple will commit to training locals in research and development on the company’s products so they can then develop similar software and design their own goods, the people said. The move is set to placate the government, which has been pushing Apple to set up R&D facilities in the country, they added.
The innovation investment will be done through programs other than the existing Apple academies, one of the people said.
9to5Mac’s Take
While this report sounds definitive, we’ve been here several times before so this definitely falls into “believe it when it’s announced” territory.
Photo of Jakarta by Visual Karsa on Unsplash
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