The now almost four month-long ban on sales of the iPhone 16 in Indonesia may be lifted “very, very soon,” according to a government minister.
Indonesia banned sales of the iPhone 16 in October 2024, just weeks after it was launched. It was because of the country’s laws about locally-sourced components, and also because Apple had fallen short on its investment commitments.
According to Bloomberg, the long negotiation between Apple and the country may be about to be resolved. There are no specific details of any deal with Apple, and the company has not commented, but a local minister has said the conclusion is in sight.
“I strongly believe it will resolve very, very soon,” Investment Minister Rosan Roeslani said. “Hopefully within one or two weeks this issue can be resolved.”
The issue of sourcing components locally is complex. While sources vary, Indonesia reportedly requires firms to make between 35% and 40% of a devices components in the country, but that’s a high bar — and the government has previously allowed exceptions.
Apple has benefited from those exceptions and until 2024 had a deal whereby it instead invested in Indonesia in other ways. Its commitment was said to be around $110 million, but ultimately Apple only invested approximately $95 million.
Following the ban, Apple tried making a derisory offer of $10 million more, but Indonesia rejected that — and Apple’s next offer of $100 million. The country then also said that Apple’s offer of investing $1 billion, wasn’t enough either.
In that case, Apple’s offer was to build a factory in Indonesia, but it would be manufacturing AirTags. Indonesian Industry Minister Agus Gumiwang Kartasasmita said that this couldn’t affect the iPhone 16 ban “because [the factory] has no direct relations [to iPhone components].”
While in his new interview Investment Minister Rosan Roeslani did not address the specifics of any deal, he appeared to suggest that Apple may again escape the local content quota requirement.
“The way they calculate it is different I think,” Roeslani said. “Now they find a solution on that one, so hopefully they accept the discrepancies so we can have the iPhone 16 sold in Indonesia.”
Roeslani did not explain further, and there are no more details of what deal the minister expects to be resolved soon. However, during previous announcements, the industry minister did say that Apple’s $1 billion offer “is not sufficient.”
So presumably Apple has made a larger offer, but it appears likely that it will not comprise a mass moving of component manufacturing to Indonesia. That would be an enormous commitment, especially as Apple currently has no manufacturing there — although Tim Cook had previously promised to consider it.
Separately, Huawei announced in early January 2025, that it would be manufacturing smartphones in the country. It is partnering with an Indonesian firm to do so, and aims to ultimately produce around 30 different phones and tablets there.
