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Indonesia Approves Permits for Five Apple iPhone 16 Models

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Indonesia’s communications ministry has granted telecommunications permits for five models of Apple’s upcoming iPhone 16, marking a significant step towards lifting a previous domestic sales ban. This move follows the issuance of local content certificates for 20 Apple products, including the iPhone 16, last week. However, Apple still requires an import permit from the trade ministry to begin selling the devices locally, according to Indonesia’s industry ministry.

The Indonesian government had previously banned iPhone 16 sales last year, citing Apple’s failure to meet local content requirements, which mandate that products contain a certain percentage of locally manufactured parts. This decision had raised concerns about potential protectionism and its impact on investor confidence in the country.

The five telecommunications certificates cover the following iPhone 16 models: iPhone 16e, iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max. The issuance of these permits comes shortly after Apple announced more than $300 million in investments in Indonesia, which will fund the construction of plants for manufacturing components and the development of a research and development center.

Apple has not yet responded to requests for comment regarding the permits. However, Dwi Handoko, a senior official from Indonesia’s communications ministry, confirmed that the five permits were issued at Apple’s request.

Indonesia and Apple Discuss Investment Proposal Amid iPhone 16 Sales Ban

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Indonesia’s Industry Minister Agus Gumiwang Kartasasmita met with Apple executives on Tuesday to discuss the company’s potential investment in the country, which is necessary for Apple to resume the sale of the iPhone 16 locally. The Indonesian government imposed a sales ban on the iPhone 16 last year after it did not meet the local content requirement, mandating that smartphones sold in the country contain at least 40% locally-made parts.

Apple does not currently have manufacturing facilities in Indonesia, which has a population of 280 million, but the company has been operating application developer academies in the country since 2018, allowing it to sell older iPhone models.

Minister Kartasasmita confirmed he met with Apple’s vice president of global government affairs, Nick Ammann, and other executives to discuss Apple’s new investment proposal. While the minister did not specify a timeline for a deal, he emphasized that the substance of the agreement was a key focus.

Apple had reportedly offered to invest $1 billion in a local manufacturing plant to meet the regulations, but Kartasasmita suggested that amount might not be sufficient. He declined to confirm the details of Apple’s proposal, but stressed that a new investment commitment is needed for 2024-2026 to fulfill Indonesia’s local content mandate.

In the past, Indonesia has pointed out that Apple still has an outstanding $10 million investment commitment from a previous three-year plan that ended in 2023.

Ammann described the meeting as productive but did not provide further details on the discussions.

 

Apple Still Barred from Selling iPhone 16 in Indonesia Despite Investment Deal

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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.