Indonesia agrees to terms with Apple to lift iPhone sales ban: Source

Core Points - The Indonesian government has reached an agreement with Apple to lift the sales ban on the iPhone 16 model, concluding months of negotiations [1][2] - Indonesia had previously prohibited the marketing and sale of the iPhone 16 due to Apple's non-compliance with local investment regulations, which require that 40 percent of phones be made from local parts [2][4] - The negotiations included a rejected $100 million investment proposal from Apple, which led to a subsequent offer of$1 billion to establish an AirTag factory in Indonesia [3] Government Actions - The Indonesian government had initially banned the iPhone 16 sales in October 2024, citing Apple's failure to meet local investment requirements [2] - Despite the sales ban, the government allowed the entry of approximately 9,000 iPhone 16 units into the country for personal use, not for commercial sale [4] - The government also imposed a similar ban on Google Pixel phones for failing to meet the same 40 percent local parts requirement [5] Industry Context - Apple's CEO Tim Cook visited Indonesia last year to explore investment opportunities in Southeast Asia and to diversify supply chains away from China [5][7] - The negotiations and subsequent agreement reflect Indonesia's strategy to attract investments from major tech companies while ensuring local manufacturing compliance [2][4]