Following a four-month-long stalemate, Apple has settled the iPhone 16 ban in Indonesia.
Starting April 11, Indonesian consumers can now buy the iPhone 16, 16 Plus, 16 Pro, 16 Pro Max, and the recently released iPhone 16e. This resolution follows Apple's agreement to an adjusted investment commitment of $300 million, a far cry from the originally quoted $1 billion.
Why Was the iPhone 16 Series Banned in Indonesia?
Indonesia has stringent local content regulations under its Domestic Component Level (TKDN) certification. According to GSM Arena, foreign businesses must have a minimum of 40% local content to sell and operate in the country. This can be done through local production, software development, or setting up R&D centers.
When the Cupertino-based giant fell short of such requirements, the sale and application of the iPhone 16 series were banned in Indonesia. Apple's efforts fueled months of back-and-forth negotiations as they gradually deepened their investment pledge to fit in with the provisions of Indonesia.
Read more: iOS 18.4 Brings Apple Intelligence to EU, But iPhone Mirroring Still Missing in Action—Here's Why
Apple's Renewed Investment Promise
Earlier, reports indicated Apple was willing to spend $100 million to settle the issue. However, it's not enough to convince the government to stop the iPhone ban. Another report said that the investment would hit $1 billion, but it did not materialize.
Reuters, however, confirmed that the agreed amount is now $300 million. It is not known if Apple managed to get a better bargain or if this is an interim amount that could go up later.
To address Indonesia's needs, Apple intends to have a factory that produces its highly sought-after AirTag trackers as well as an independent factory specifically for accessories.
The Tim Cook-led company will also invest in indigenous academies where future talent can be trained and establish additional research and development (R&D) centers in the country.
Indonesian iPhone Fans Could Soon Buy the Latest Series
With the ban lifted, Indonesian Apple fans can now finally get their hands on the latest iPhone models. The launch of the iPhone 16 series introduces Apple's latest technology, such as better camera systems, quicker processors, and longer battery life, to the market in Indonesia.
Moreover, the release of the iPhone 16e, a more affordable model for emerging markets, ensures that Apple appeals to a wider base of consumers in Indonesia.
