Apple is set to make a significant investment in Indonesia as part of a deal to remove the country’s ban on iPhone sales. The tech giant has committed $1 billion to comply with local regulations, allowing the company to sell its latest iPhone models in the Southeast Asian nation. This move comes after the Indonesian government refused to issue sales permits for Apple’s iPhones due to the company’s failure to meet local manufacturing requirements.
The announcement of this investment was made by Indonesia’s Industry Minister, Agus Gumiwang Kartasasmita, in Jakarta. The deal will kick off a process that will enable Apple to sell its iPhone 16 series in Indonesia, marking a major step toward strengthening its presence in the country. Apple had previously promised to invest $1 billion to meet the government’s conditions, and Indonesian President Prabowo Subianto urged his ministers to accept the offer.
In addition to the sale of iPhones, the agreement includes the establishment of a manufacturing plant in Batam, Indonesia. The plant will be used to produce Apple’s AirTags, small devices that help users track personal items like pets or luggage. To operate this new facility, Apple is bringing in Luxshare Precision Industry Co., one of its major suppliers.
Indonesia’s population of 278 million people, with more than half under the age of 44 and a growing interest in technology, presents a valuable market for Apple. While Apple is not yet among the top five smartphone brands in Indonesia, this deal gives the company the opportunity to tap into a burgeoning consumer base at a time when sales in China are slowing.
The $1 billion investment will also help boost local manufacturing and increase foreign investments in Indonesia. Prior to this agreement, Apple had invested only about $95 million in the country. By meeting the government’s demands, Apple is set to unlock significant potential in the Indonesian market, offering more opportunities for growth while complying with local regulations.
This move underscores Apple’s commitment to expanding in Southeast Asia, and with this agreement, both Apple and Indonesia stand to benefit in the long run.
