Indonesia’s 5-Month Ban on iPhone 16 May Soon Be Lifted

The months-long struggle between Indonesia and Apple is finally coming to an end as the two parties have decided on terms to lift the ban on the sale of iPhone 16. 

In October last year, Indonesia decided to ban the sale and use of the iPhone 16 along with a few other Apple products such as the Watch 10 series. The ban extended to new devices as well as those that have already been sold. This means anyone within the borders of Indonesia, including tourists, could no longer use their iPhone 16 phones. 

Note: The ban was only on the latest iPhone 16 model. If you had an earlier model, you could continue to use it. 

The reason behind this ban was Apple’s failure to meet local guidelines. As per Indonesian law, it is mandatory for all domestically sold devices to have at least 40% of their components locally sourced. This is done to boost the local economy and employment. 

If a company doesn’t want to source components locally, it can bypass this mandate by investing in the country. 

Apple took the second route and initially promised to invest $1 billion in building local development and research units. These units would develop the components used in Apple devices. However, the company failed to deliver on its promises which resulted in the ban. 

Given the gravity of the situation, Apple renewed the offer to invest $1 billion in the country which President Prabowo Subianto asked his ministers to accept. But last month, they suddenly backed out of the deal, hoping to negotiate for better terms.

So now, on top of the $1 billion investment, Apple will also have to train local Indonesian companies in research and development to be able to manufacture similar components.

This is a better deal for Apple, which was initially being forced to manufacture iPhones locally. However, Indonesia has been known to retreat from its promise, so until things are set in stone, there’s still a chance for the deal to fall through. 

Apple’s Market Share In Indonesia 

Apple was already struggling to gain traction in the Indonesian market. As of last year, it’s not one of the top 5 smartphones sold in the country. The biggest reasons behind this are the price of iPhones and the purchasing power of the locals. A lot of them cannot even afford the latest models such as the iPhone 16 and often resort to buying second-hand models. 

Regardless of that, the country’s 280 million population is too good an opportunity to let go. Now that the initial legal hurdles are out of the way, Apple might find a way to expand its market share in the country which, as of January 2025, is merely 7.3%. 

Alpa is a senior editor with a wealth of experience in alternative finance, fintech, cryptocurrency, app security software, and the medical industry. She’s currently an in-house managing editor with the Techreport team.

Alpa is passionate about breaking down complex topics and sharing informative content that provides value.

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