Good news for Apple fans in Indonesia! After months of negotiations, the iPhone 16 series, including the latest iPhone 16e, is finally set to launch in Indonesia. This breakthrough came after Apple and the Indonesian government, through the Ministry of Industry, reached an agreement on the Domestic Component Level (TKDN) requirement.
Apple has officially confirmed the news via a press release. “We are excited to expand our investment in Indonesia and can’t wait to launch the entire iPhone 16 product range, including iPhone 16e, to local consumers,” Apple representatives stated.
The deal secured on February 27, 2025, saw the Ministry of Industry approving Apple’s investment plan for 2025-2028, which was pivotal for attaining the TKDN certificate. “Apple has committed to investing $160 million in cash,” announced Minister of Industry Agus Gumiwang Kartasasmita, highlighting the substantial financial commitment made by Apple. This investment is part of the company’s strategy to meet Indonesia’s local content regulations.
To comply with TKDN regulations, Apple has lined up several major investments. These include:
- Cash Investment: $160 million
- AirTag Factory: Located on Batam Island, built through Apple’s manufacturing partner, ICT Luxshare, backed by another $150 million investment.
- Production Line: Situated in Bandung to manufacture mesh fabric for AirPods Max.
- Establishment of the Apple Software Innovation and Technology Institute & Apple Professional Developer Academy.
- R&D Center Collaboration: Apple will work with 15 top universities in Indonesia to focus on software development.
This agreement marks the end of nearly six months of negotiations following the Indonesian government’s initial ban on iPhone 16 sales, which was enacted after Apple failed to meet the local component requirements. The ban came to light back in October 2024, when authorities required 40% of the components for smartphones sold domestically to be sourced locally. At the time, Apple was unable to comply and faced significant obstacles.
Throughout this period, big tech competitors like Samsung and Xiaomi complied with local regulations by establishing manufacturing plants within Indonesia, allowing them to continue their operations undeterred.
Apple’s efforts during the impasse included focusing on training programs and investments, originally committing $95 million to the region and setting up Apple Developer Academies. The situation grew more complex after Indonesia increased its enforcement of local content rules, also banning Google’s Pixel phones for similar non-compliance issues.
Despite the challenges, Apple managed to bolster its investments from $95 million to $1 billion, which also played a significant role in the negotiations. This included plans for the AirTag manufacturing plant on Batam Island as part of the agreement secured by the Indonesian government.
Minister Agus Gumiwang underscored the significance of the partnership: “This will make Indonesia the first country in Asia and only the second outside the United States to have an Apple R&D facility.” The establishment of such facilities, alongside the expansion of local training programs, suggests increased commitment from Apple to not only enter the Indonesian market but to actively contribute to its technological development.
Initially, Apple faced criticism for its reluctance to establish manufacturing operations domestically. The delay and Apple's outstanding investment obligation from 2020-2023, amounting to $10 million, had only been fulfilled as late as December 2024, prompting additional penalties. Now, with this recent agreement, Apple has finally overcome the barriers to launching its products.
Local consumers are enthusiastic about the imminent availability of the iPhone 16 series, which promises cutting-edge technology and enhanced features, especially after the long wait since its global launch in September 2024. The partnership also aims to propel the smartphone industry forward within Indonesia, raising hopes of fostering local technological advancements.
This resolution marks not just the lifting of the sales ban but also signifies broader economic opportunities for Indonesia as it positions itself as an attractive market for global tech companies. With the anticipated opening of Apple's new facilities and collaborative projects, many are optimistic about the potential growth spurred by such initiatives.
Looking forward, the collaboration between Apple and the Indonesian government appears set to redefine the technological fabric of the nation, establishing pathways for other international companies to gain traction within the region. With this deal, customers eagerly await the chance to experience the features of the iPhone 16 series officially, signaling new beginnings for Apple’s operations within Indonesia.