An Indonesian ban on iPhone 16 sales may be close to being lifted, after Apple has secured preliminary approval for a $1 billion investment proposal in the country, according to Bloomberg.
Indonesian President Prabowo Subianto has reportedly lent his support to the plan, following a weekend briefing. While President Prabowo is reported to have directed his Economic Affairs Ministry to finalize the agreement, no specific timeline for the lifting of the iPhone 16 sales ban has been announced.
The investment will include manufacturing facilities inside the country, including an AirTag production plant on Batam island.
The Batam plant is expected to initially employ 1,000 workers and is planned to eventually account for 20% of global AirTag production. The location is attractive, due to its free-trade zone status, which provides tax exemptions and import duty benefits.
The investments will also fund an additional manufacturing facility in Bandung to produce other accessories, as well as an expansion of Apple’s existing developer academies in Indonesia.
iPhone 16 sales in Indonesia were blocked in October, after the government determined that Apple had not met the country’s 40% domestic content requirement for smartphones. The government also claims Apple fell short of a previous promise to invest 1.7 trillion rupiah through developer academies, instead investing only 1.5 trillion rupiah.
Indonesia represents a significant piece of Apple’s smartphone market, as the country has a population of 280 million, who own around 354 million active mobile phones.
Apple raised its proposal from a initial offer of $10 million to $100 million in November, which includes plans for opening research and development facilities and developer academies in Bali and Jakarta over a two-year period. Apple also says it plans to manufacture AirPods Max ear cup mesh components in Bandung starting July 2025.
Indonesia banned iPhone 16 sales in the country on October 28, after officials determined Apple had not met the country’s requirement for 40% domestic content in smartphones. The government also claims Apple fell short of a previous promise to invest 1.7 trillion rupiah ($109.6 million US) through developer academies, instead investing only 1.5 trillion rupiah ($95 million US).
Indonesia remains a significant market for Apple, with over half of its 278 million residents under the age of 44.