Jakarta (AFP) – The Indonesian government has agreed to terms with Apple to lift a ban on sales of the iPhone 16 model, a government source familiar with the matter told AFP on Tuesday, ending months of negotiations between Jakarta and the tech giant. Indonesia in October prohibited the marketing and sale of the iPhone 16 model over Apple’s failure to meet local investment regulations requiring that 40 percent of phones be made from local parts, as the country seeks to boost investments from giant tech companies.
The government source did not disclose any information about the terms, nor when the agreed conditions would be presented to the public. In November, Indonesia rejected a $100 million investment proposal from Apple, saying it lacked the “fairness” required by the government. The negotiation deadlock forced the tech giant to later offer an investment of $1 billion to build an AirTag factory in the country. Apple and Indonesia’s industry ministry, which will sign off on any agreement, did not immediately respond to a request for comment.
Industry Minister Agus Gumiwang Kartasasmita had said Apple had not satisfied the government’s requirements, especially when compared with the tech giant’s investments in other countries. Despite the sales ban, the government had allowed iPhone 16s to be carried into Indonesia if they were not being traded commercially. As of the end of 2024, the government estimated about 9,000 units of the new model have entered the country that way. Indonesia also banned the sale of Google Pixel phones for failing to meet the 40 percent parts requirement.
Last year, Apple chief executive Tim Cook visited Indonesia as the tech giant explores ways to invest in Southeast Asia’s biggest economy and diversify supply chains away from China. He met then-president Joko Widodo and his successor Prabowo Subianto for talks after the iPhone-maker announced it would expand its developer academies in the country.
© 2024 AFP
