Indonesia's long iPhone 16 ban may end soon
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iPhone 16 Pro models. 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.
