Indonesia is reportedly on the verge of greenlighting sales of Apple Inc.’s iPhone 16 series after reaching an agreement to lift the ban that has kept the latest models off the market.
Agreement Reached, But Investment Conditions Apply
According to a Bloomberg report published on 26 February 2025, the Indonesian government and Apple have agreed to remove restrictions on iPhone 16 sales. The deal, confirmed by multiple government and Apple sources, paves the way for Apple’s flagship devices to finally enter the Indonesian market.
However, Apple remains bound to a prior commitment—an investment of $1 billion (Rp 16,2 trillion) in Indonesia. As part of this, the Ministry of Industry (Kemenperin) is expected to sign a formal agreement with Apple later this week, with an official announcement anticipated soon.
Research Hub and AirTag Factory in Batam
Beyond the iPhone 16 approval, Apple has agreed to establish a research and development (R&D) center in Indonesia, aimed at nurturing local digital talent and fostering homegrown software innovation.
The investment negotiations, which began on 8 January 2025, involved Kemenperin and the Ministry of Investment and Downstreaming (BKPM). A key outcome of these talks was Apple’s commitment to building an AirTag manufacturing plant in Batam. This $1 billion factory, constructed through Apple’s vendor network, is expected to meet 65% of global AirTag demand.
Minister of Investment and BKPM Chief Rosan P. Roeslani clarified that Apple itself would not directly invest in the plant, but rather, one of its suppliers would handle the operations—following the same vendor-based investment strategy Apple has used in India, Vietnam, and Malaysia.
Apple’s Compliance with Local Regulations
The initial ban on iPhone 16 sales stemmed from Apple’s failure to meet Indonesia’s Domestic Component Level (TKDN) requirements, which stipulate a minimum local content percentage in electronic products. Even after the AirTag factory deal, the Ministry of Industry maintained that Apple’s investments had yet to fully satisfy these regulations.
Ongoing negotiations have been intensive, with Minister of Industry Agus Gumiwang Kartasasmita revealing that Apple and his team met three times in a single week to finalize investment details. Agus emphasized that a swift resolution was the goal, particularly regarding the establishment of the promised R&D center.
In a related development, Apple has also paid off a $10 million investment debt (Rp 163 billion) from a previous commitment spanning 2020–2023, further demonstrating its willingness to align with Indonesian regulations.
Indonesians Can Still Buy iPhone 16 Abroad
While the iPhone 16 series remains unavailable for official purchase in Indonesia, customers can still acquire the devices overseas and bring them into the country for personal use. According to Customs and Excise Directorate official Chotibul Umam, individuals can import up to two iPhones per trip, provided they are for personal use and not for resale.
However, authorities have warned against trying to bypass regulations by making repeated trips to buy iPhones abroad. Customs officials track passenger data and could block attempts to import multiple devices over time.
With the deal close to completion, an official announcement on iPhone 16’s availability in Indonesia is expected soon, marking a major step for Apple in one of Southeast Asia’s largest smartphone markets.
