Following a recent agreement, Apple is set to resume sales of its iPhone 16 smartphone in Indonesia, according to the Industry Ministry, as reported by Reuters.
The lifting of the ban comes five months after Indonesia initially blocked Apple from selling the iPhone 16 in the country, citing non-compliance with the local regulation that requires at least 40% of components in domestically sold smartphones and tablets to be produced locally. This blockade was put in place to enforce the country’s manufacturing standards.
In a move to comply with these regulations, Apple committed to investing $1 billion in its first manufacturing plant in Indonesia, as announced in December. This facility will be dedicated to producing components for Apple devices, including smartphones. Prior to this, Indonesia had rejected Apple’s initial $100 million investment proposal in November, deeming it insufficient to meet the prerequisites for selling iPhones in the country.
Indonesia’s Industry Minister, Agus Gumiwang Kartasasmita, stated that Apple is currently in the process of obtaining a local content certificate, which is necessary for the tech giant to legally market its devices in Indonesia.
At the time of this report, Apple had not provided a comment in response to a request from TechCrunch.
It’s worth noting that Apple’s CEO, Tim Cook, visited Indonesia last year and expressed interest in exploring manufacturing opportunities within the country.
Domestically, Apple has recently announced a commitment to invest $500 billion over the next four years in advanced manufacturing, engineering, and education, with a particular focus on artificial intelligence and chip manufacturing for AI applications.
As part of its strategy to diversify its supply chain and reduce dependence on China, Apple has been expanding its manufacturing presence globally. Currently, the iPhone 16 is being produced in Brazil, India, and China, while various models of AirPods are assembled in Vietnam.
Jakarta has also taken similar actions against other tech companies, including banning the sale of Google Pixel phones from Alphabet due to non-compliance with local component usage requirements. According to recent market reports, the top smartphone brands in Indonesia during the third quarter of 2024 were Oppo, Xiaomi, Transsion, Samsung, and Vivo.
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