iPhone 16 Remains Banned in Indonesia Despite Apple’s $1 Billion Investment Plan

Indonesia Industry Minister Agus Gumiwang Kartasasmita said that Apple needs to manufacture part of its smartphones or components in the country, while AirTag, which it had proposed to manufacture, is only an accessory.

“As of this afternoon, the government does not have a basis for issuing the local content certificates” that Apple needs to sell its flagship device in Indonesia, reported Bloomberg quoting the Industry Minister.

“There’s no deadline for compliance,” Kartasasmita said. “If Apple wants to sell the iPhone 16, and especially if they plan to launch the iPhone 17, the decision is entirely up to them.”

Indonesia banned the sale and use of iPhone 16 in the country in October. 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.

In November, the country 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.

Last month, Apple proposed to invest $1 billion in Indonesia, which the government has rejected. The proposal included 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 percent of global production of AirTags.

Apple rivals Samsung and Xiaomi have set up factories in Indonesia to comply with domestic content regulations.