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Indonesian government minister confirms that despite Apple planning production facility, it still cannot sell its iPhone 16 locally
The challenge facing Apple’s Tim Cook in the largest country in Southeast Asia continues, as sales of the iPhone 16 remain blocked in Indonesia.
Reuters reported that the Indonesian industry minister as saying on Wednesday that Apple still cannot sell its iPhone 16 in Indonesia, despite striking a deal to build a local production facility there.
In 2024 Indonesia had banned sales of the iPhone 16 in the country, because the handsets failed to meet requirements that smartphones sold domestically should comprise at least 35 percent locally-made parts.
AirTag factory
That came after Apple CEO Tim Cook had visited the country in April 2024, and met with President Joko Widodo.
Cook said at the time Apple will look into building a manufacturing facility in Indonesia.
Apple reportedly had initially offered first $10m and then $100m for the production facility, but this was rejected by the Indonesia government, which had been demanding a $1 billion investment.
It is understood that Apple then offered a $1 billion investment in the country to build a facility producing its Airtag tracking device on Indonesia’s Batam island, close to Singapore.
Indonesia’s minister of industry, Agus Gumiwang Kartasasmita, reportedly met with Apple’s VP of global government affairs, Nick Ammann, on Tuesday 7 January to discuss Apple’s investment proposal.
Still not enough
And it seems that Minister Agus Gumiwang Kartasasmita indicated that Apple’s deal to build a AirTag production facility still would not count as a locally-made iPhone part.
“There is no basis for the ministry to issue a local content certification as a way for Apple to have the permission to sell iPhone 16 because (the facility) has no direct relations,” he was quoted by Reuters as saying.
He reportedly added that the ministry would only count phone components.
The AirTag production facility is slated to start operations in 2026, but it remains to be seen whether Apple will continue with its planned invested in the country, in the face of the Indonesian government’s stubborn pressure on the tech giant.
Unfortunately for Apple and Tim Cook, Indonesia is a hugely important market, as it is the largest country in Southeast Asia.
Indonesia also has a large potential user base, as over half of the 278 million citizens are said to be under the age of 44.
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