Hopes for lifting the iPhone 16 ban in Indonesia in the new year remain uncertain as the government takes a firm stance. According to Reuters, Apple must establish a production facility for manufacturing iPhone components locally, or the ban will stay in effect, reports GSM Arena.
Indonesia’s Minister of Industry, Agus Gumiwang Kartasasmita, recently held multiple meetings with Apple representatives. Discussions led to Apple agreeing to set up a manufacturing facility on Batam Island for producing AirTag trackers. However, despite Apple’s commitment to investing $1 billion in the country, the Indonesian authorities deem this insufficient for lifting the iPhone 16 ban.
The Minister stated, “There is no basis to grant local material certification as this production facility is not directly related to phone components. The ministry will only consider components related to phones.”
The iPhone 16 ban stems from an Indonesian regulation requiring foreign companies to use 40% local components in their products. Companies can meet this requirement by producing locally, developing software, or establishing research and development centers.
Apple will need to continue negotiations with the Indonesian government to resolve the situation. The industry and consumers alike await further developments in this ongoing matter.
