Apple remains unable to sell its iPhone 16 in Indonesia, despite reaching a deal to establish a local production facility. The issue stems from the company’s failure to meet Indonesia’s domestic content requirements, which mandate that smartphones sold within the country must contain at least 35% locally made parts.
According to Indonesia’s Industry Minister, Agus Gumiwang Kartasasmita, although Apple has signed an agreement to build a facility on Batam Island to produce its Airtag tracking device, this does not fulfill the necessary local content criteria for iPhones. The minister clarified that the production of Airtags does not directly contribute to the local assembly of iPhone components, and therefore, the factory will not help Apple secure the certification needed to sell the iPhone 16 in Indonesia.
While the facility will be worth $1 billion and is expected to begin operations in 2026, the minister emphasized that the local content rule applies strictly to phone components. As of now, Apple has no manufacturing operations in Indonesia, though it has established application developer academies in the country since 2018.
Apple’s ongoing efforts to enter the Indonesian market come after a series of meetings between the company and Indonesia’s government. Apple proposed “innovative investment” solutions, which Indonesia countered with conditions for meeting local manufacturing requirements.
