Indonesia and Apple have reached an agreement to end the ban on iPhone 16 sales in the country, which has been in place for five months. The deal is likely to be formalized through a memorandum of agreement this week.
As part of the agreement, Apple will invest $1 billion in Indonesia. This investment will include setting up manufacturing facilities and funding Apple academies. The company plans to establish a manufacturing plant on Batam island to produce AirTags, which will account for 20% of global AirTag production. Another facility is planned for Bandung to produce other types of accessories.
Apple has also committed to training local talent in research and development, addressing one of the government’s key demands for establishing R&D facilities in the country. However, the company has no immediate plans to manufacture iPhones in Indonesia.
The deal is seen as a win for President Prabowo Subianto, who directed his ministers to accept Apple’s $1 billion investment offer. Regaining access to Indonesia’s market of 278 million people is important for Apple, especially as its sales in China have slowed.
Apple has settled a $10 million investment shortfall tied to local content rules for 2020-2023, but this payment alone did not lift the ban on iPhone 16 sales.
More here.