Apple Moves Closer to Lifting iPhone 16 Ban in Indonesia

According to a report by Bloomberg, Apple briefed the Indonesian President Prabowo Subianto and the president is said to have give his support for the government to accept Apple’s proposal.

The proposal includes setting up an AirTags plant on the island of Batam because of its free-trade zone status, which exempts value-added taxes and import duties. It is expected to employ around 1,000 workers. The plant will account for 20 per cent of global production of AirTags.

Apple will also set up a plant in Bandung to make other types of accessories and also fund Apple academies that equip students with tech skills like coding.

However, the Indonesian government has not yet given a timeline to Apple on when the ban on iPhone 16 sales will be lifted. The report stated that the plan could change as Indonesia backtracked from decisions earlier. With the investment, Apple seeks to have access to 278 million consumers.

In October, Indonesia banned the sale and usage of Apple iPhone 16 and Apple Watch Series 10 in the country. The Indonesian government said the reason for the ban of the latest iPhone is unfulfilled investment promises by Apple. The tech giant committed to invest IDR 1.71 trillion in the country but they invested only IDR 1.48 trillion.

Last month, Indonesia rejected an Apple $100 million investment proposal aimed at lifting a ban on iPhone 16 sales, saying it lacks the "fairness" required by the government.