Apple Secures Deal to Resume iPhone Sales in Indonesia

Apple Inc. has finalized an agreement with the Indonesian government, clearing the way for the iPhone 16 series to be sold in the country after a five-month ban. The resolution follows extended negotiations over Indonesia’s local manufacturing requirements, which had previously blocked Apple from obtaining a sales permit.

The dispute began in October 2024 when Indonesia enforced its rule that smartphone companies must contribute to domestic production. Apple, which had already invested around $95 million in the country, fell short of meeting the required threshold. In response, the tech giant proposed a $1 billion investment, a move backed by President Prabowo Subianto. However, Indonesia’s Industry Ministry initially held out for stronger commitments before agreeing to lift the ban.

This deal represents a strategic win for Indonesia, as it successfully pushed Apple to expand its investment in the country rather than merely treating it as a sales market. The agreement not only strengthens Indonesia’s manufacturing sector but also positions the nation as an increasingly influential player in the global tech supply chain. For Apple, gaining access to Indonesia’s fast-growing consumer market is critical, particularly as sales slow in China. With a population of 278 million, more than half of whom are under 44 and highly engaged with digital technology, Indonesia offers significant long-term growth potential.

As part of the agreement, Apple will establish a production facility on Batam Island to manufacture AirTags, the company’s tracking device used for locating personal belongings. The plant will be operated by Luxshare Precision Industry Co., a key Apple supplier. This move not only aligns with Indonesia’s push for more localized production but also enhances Apple’s regional manufacturing footprint.

With the sales restriction now lifted, Apple is set to reintroduce its latest iPhones to Indonesian consumers while deepening its commitment to the country’s economy. The agreement underscores Indonesia’s growing influence in the global tech industry and highlights Apple’s willingness to adapt its strategies to secure key international markets.

Also Read: Indonesia Bans Sales of Google Pixel and Apple iPhone 16 Over Local Content Compliance