Apple has secured approval to sell the iPhone 16 series in Indonesia after reaching an agreement with the government. The deal follows regulatory challenges due to local content requirements. Apple’s $1 billion investment aims to comply with Indonesia’s regulations and expand its presence in the country.
Apple Indonesia Investment: A Game Changer for the Market
Apple’s $1 billion investment marks a significant step in strengthening its foothold in Indonesia. The company had faced restrictions due to Indonesia’s local content requirements, known as TKDN, which mandate at least 35% local components.
Previously, Apple’s investment proposal in December 2024 was at a standstill. Now, both sides have reportedly reached an agreement on the terms and conditions. This means that the Indonesian government can now grant Apple the necessary certification to sell the iPhone 16 series in the country.
Overcoming Regulatory Hurdles for iPhone 16 Sales
Since October 2024, Indonesia had banned the sale of the iPhone 16 series due to non-compliance with local content requirements. To resolve this, discussions involved the Ministry of Investment, Ministry of Industry, and Apple representatives. The investment plan was a key factor in securing approval for iPhone 16 sales.
Apple also addressed past financial obligations. The company paid a $10 million debt from a previous investment commitment between 2020 and 2024. “Yes, Apple has completed the payment. We have received it. So, regarding the $10 million, I can confirm that it has been settled,” said Minister of Industry Agus Gumiwang Kartasasmita, as reported by Kompas.
The $1 billion investment report was first published by Bloomberg on Tuesday (Feb 25, 2025). According to sources cited by Bloomberg, Kemenperin will sign an MoU (Memorandum of Understanding) with Apple this week, followed by a press conference to announce the agreement. However, the exact date remains undisclosed.
Apple’s Commitment to Local Development and Innovation
Apple’s investment goes beyond finances, it also aims to nurture Indonesia’s tech talent. The company will expand its Apple Developer Academy, which trains developers to create software for iOS, macOS, watchOS, and tvOS. This initiative aims to equip local developers with the skills needed to compete globally, ensuring sustainable growth in Indonesia’s digital economy.
Additionally, Apple’s investment supports new research and development projects beyond its existing programs. By fostering local innovation, Apple strengthens its global ecosystem while contributing to Indonesia’s technology sector. The company’s long-term strategy revolves around integrating local expertise into its operations, promoting knowledge transfer, and enhancing the country’s technological capabilities.
Factories in Batam and Bandung: Strengthening Apple’s Supply Chain
To further comply with regulations, Apple is investing in local manufacturing. Reports suggest the company will build an AirTag production facility in Batam, though it’s not confirmed. Apple likely chose Batam for its strong electronics industry and proximity to supply chains
The facility is expected to enhance Apple’s production capabilities while contributing to Indonesia’s local economy through job creation and technological advancements. In addition to the factory in Batam, Apple reportedly plans to build another factory in Bandung.
“The factory in Bandung will serve as a production hub for Mesh AirPods Max components starting in July 2025 as part of Apple’s global value chain.” said Ministry of Industry spokesperson Febri Hendri Antoni Arif as reported by Kompas. These facilities will strengthen Apple’s supply chain while contributing to Indonesia’s manufacturing sector.
Future Impact of Apple’s Investment in Indonesia
Apple’s investment will facilitate iPhone 16 sales while boosting Indonesia’s technology sector. The increased local manufacturing presence could attract further foreign investment. Additionally, the company’s developer training programs may enhance Indonesia’s digital economy by fostering innovation in software development.
While Apple has no immediate plans to manufacture iPhones in Indonesia, its investment lays the groundwork for potential future expansion. Reports indicate the company is committed to strengthening its presence in the region, which could lead to more localized production in the coming years.
A Strategic Move for Apple and Indonesia
Apple’s investment in Indonesia is a strategic move that benefits both parties. By complying with TKDN regulations and expanding local operations, Apple has secured market access for the iPhone 16 series.
At the same time, Indonesia gains new manufacturing facilities, job opportunities, and tech education programs. This partnership sets the stage for a stronger collaboration between Apple and Indonesia in the future.
Source: tekno.kompas.com, anataranews.com
Image: Media Whale Stock
