Apple's $1 Billion Investment May Soon End Indonesian iPhone Ban - MacRumorsOpen MenuShow RoundupsShow Forums menuVisit ForumsOpen Sidebar
Skip to Content

Apple's $1 Billion Investment May Soon End Indonesian iPhone Ban

Apple is close to reaching an agreement with Indonesia to lift the ban on iPhone 16 sales in the country after securing preliminary approval for a $1 billion investment proposal, according to Bloomberg.

iPhone 16 Apple Store
Indonesian President Prabowo Subianto is said to have given his support for the government to accept Apple's investment plan following a weekend briefing. The proposal includes establishing manufacturing facilities in the country, with one of Apple's suppliers set to build an AirTag production plant on Batam island.

The Batam facility is expected to initially employ 1,000 workers and will eventually account for 20% of global AirTag production. The location was chosen for its free-trade zone status, which provides tax exemptions and import duty benefits.

Additional investments will fund a separate manufacturing facility in Bandung for producing other accessories, as well as expanding Apple's existing developer academies in Indonesia. President Prabowo has directed his Economic Affairs Ministry to finalize the agreement, but no specific timeline has been provided for lifting the iPhone 16 sales ban.

The ban was implemented in October after Indonesian authorities determined Apple had failed to meet the country's requirement for 40% domestic content in smartphones. Apple's latest proposal represents a significant increase from its previous offers of $10 million and $100 million, which were rejected by the government.

If approved, the deal would mark a success for President Prabowo's efforts to attract foreign investment while demonstrating the effectiveness of Indonesia's strategy to pressure international companies into developing products locally. The country remains a significant market for Apple, with over half of its 278 million residents under the age of 44.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Popular Stories

imac video apple feature

Apple Released Yet Another New Product Today

Friday March 20, 2026 2:39 pm PDT by
Apple has unveiled a whopping nine new products so far this March, including an iPhone 17e, iPad Air models with the M4 chip, MacBook Air models with the M5 chip, MacBook Pro models with M5 Pro and M5 Max chips, the all-new MacBook Neo, an updated Studio Display, a higher-end Studio Display XDR, AirPods Max 2, and now the Nike Powerbeats Pro 2. iPhone 17e features the same overall design as...
iPhone 18 Pro Deep Red Feature

iPhone 18 Pro Launching Later This Year With These 12 New Features

Wednesday March 18, 2026 7:39 am PDT by
While the iPhone 18 Pro and iPhone 18 Pro Max are not expected to launch for another six months or so, there are already plenty of rumors about the devices. It was initially reported that the iPhone 18 Pro models would have fully under-screen Face ID, with only a front camera visible in the top-left corner of the screen. However, the latest rumors indicate that only one Face ID component...
ios 26 4 pastel

iOS 26.4: Top 10 New Features Coming to Your iPhone

Friday March 20, 2026 2:44 pm PDT by
iOS 26.4 isn't the major update with new Siri features that we hoped for, but there are some useful quality of life improvements, and a little bit of fun with an AI playlist generator and new emoji characters. Playlist Playground - Apple Music has a Playlist Playground option that lets you generate playlists from text-based descriptions. You can include moods, feelings, activities, or...

Top Rated Comments

mavis Avatar
16 months ago
Sounds like extortion to me. 😐
Score: 15 Votes (Like | Disagree)
surferfb Avatar
16 months ago

How is it extortion?

If Apple wants to do business in Indonesia and access Indonesia customers, they have to meet Indonesia requirements (e.g., 40% domestic content, some sort of investment, pay taxes, etc.) and if app developers want to do business on iOS and access iOS customers (at least for the non-EU markets), they have to meet Apple requirements which includes paying Apple to sell apps/in-app products.

Both the Indonesia and iOS/app scenarios are legal, unlike extortion.
Looking forward to your support for the incoming American administration demanding that foreign companies pay a billion dollars before being able to sell their products in the US!
Score: 5 Votes (Like | Disagree)
wbeasley Avatar
16 months ago
every country will try this now... give in to extortion once and you set a dangerous precedent... :(
Score: 5 Votes (Like | Disagree)
iPay Avatar
16 months ago
That should [S]buy enough generals[/S] reinstate enough confidence to get back in business.
Score: 5 Votes (Like | Disagree)
StoneJack Avatar
16 months ago
Make Indonesia great again! :)
Score: 4 Votes (Like | Disagree)
sparkie7 Avatar
16 months ago
Apple bean-counters would have done their calculations, spreadsheets + projections. It was a business decision that favoured Apple. Otherwise they wouldn't have done the deal.
Score: 4 Votes (Like | Disagree)
Related Apple News: Opinion | Business | Ipad | News | Iphone