Apple is considering iPhone production in Indonesia following a sales ban on the iPhone 16. This ban was imposed as Apple failed to meet investment commitments in October 2024. Despite Apple’s efforts with investment proposals and development center expansions, all offers have been rejected so far.
Apple initially committed $110 million to Indonesia but only invested $95 million, missing the target. This action may have signaled the conclusion of their agreement. Consequently, Indonesia enforced a local content rule, demanding 35%-40% local sourcing for devices like smartphones.
Following the iPhone 16 sales ban, Apple offered investments starting at $10 million, insufficient to cover the deficit. Indonesia rejected subsequent $100 million offers. A $1 billion investment was accepted but did not lift the ban fully.
As part of a $1 billion investment, Apple began manufacturing on Batam island in Indonesia, separate from iPhone components and the iPhone 16 ban. Indonesian Investment Minister Rosan Roeslani mentioned in late January 2025 that they were close to resolving the issue, but no official announcement has been made.
To comply with Indonesia’s local content quota, setting up manufacturing and supply chain will be costly and time-consuming. Apple may insist on lifting the iPhone 16 ban right away as part of its local production agreement. Prior to the ban, Apple aimed to sell 2.9 million iPhones in Indonesia by 2024, capturing just 2% of the market.
Sources News From Various Digital Platforms, Websites, Journalists, And Agencies.
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