Indonesia and Apple have reached an agreement that could lift the country’s ban on the iPhone 16, with a deal expected to be signed as early as this week, according to sources familiar with the matter, as reported by Bloomberg News.
The Indonesian government imposed the ban on the iPhone 16 in October after Apple failed to comply with regulations requiring smartphones sold within the country to contain at least 35% locally-produced components. This move led to tensions between the tech giant and Indonesian authorities.
In response, Indonesia’s investment minister has announced that Apple plans to invest $1 billion in a manufacturing plant in Indonesia. The plant will produce components for smartphones and other electronic products, marking a significant step towards meeting the country’s local production requirements.
In addition to the manufacturing investment, Apple has committed to contributing to local workforce development. The company plans to offer training programs focused on research and development of its products, though these programs will be distinct from the existing Apple academies currently in operation.
Despite the investment and training initiatives, Apple has no immediate plans to start manufacturing iPhones within Indonesia, according to the report.
Neither Apple nor Indonesia’s Ministry for Industry, which is responsible for enforcing the ban, has responded to requests for comment from Reuters or Bloomberg.
