Indonesia, the world’s largest Muslim-majority country by population, has still not allowed Apple to sell its iPhone 16 series months after the ban was imposed. In October 2024, the Indonesian government prohibited the sale and use of iPhone 16 series and Apple Watch 10 series devices.
The ban was a result of Apple’s failure to fulfill its investment promises in Indonesia. Apple had previously pledged to invest over $100 million in research and development centers in the country. However, the company only invested approximately $95 million, which led the Indonesian government to impose the sales ban.
According to a recent Bloomberg report, Apple offered a $1 billion investment, which includes setting up a factory for manufacturing AirTags, to lift the ban. However, the Indonesian government deemed this offer insufficient to lift the restrictions.
Indonesian Industry Minister Agus Gumiwang Kartasasmita stated on January 8 that, under local laws, Apple must locally manufacture a portion of its smartphones or their components. He mentioned that since AirTags are merely accessories, the offered investment was inadequate. The government has not yet issued a certification for Apple to sell its flagship phones in Indonesia due to non-compliance with local investment regulations.
Minister Kartasasmita emphasized that if the situation persists, Indonesia would explore other options, and a counteroffer has already been sent to Apple. As of now, Apple has not released a statement on the matter.
Earlier, on January 7, Indonesia’s Investment Minister Rosan Ruslani mentioned that the government approved Apple’s plan to build an AirTag factory, but the review of local material production laws is still underway. Once that is completed, the decision to approve Apple’s project will be made.
Apple’s proposed factory for AirTag production is planned to be built in 2026, allowing users to track their items, pets, or other belongings. Minister Kartasasmita said that Apple has not been given a deadline for compliance with local regulations, but if the company wishes to sell the iPhone 16 and, especially, plans to introduce the iPhone 17, it must make its own decision.
Apple is working towards unrestricted access to Indonesia’s 278 million consumers, over 50% of whom are under 44 years old and prefer using smartphones.
It is worth noting that Google’s Pixel smartphones also faced a sales ban in Indonesia due to a lack of investment commitments.
